Lordstown Motors and other EV makers are struggling due to tightening access to capital and mounting economic uncertainty. The company’s cash reserves have dropped significantly, and its net loss has ballooned in the past year. Lordstown Motors is currently in talks with Foxconn, but has yet to reach a deal. The company has warned that it may have to halt production of its Endurance electric pickup truck unless it finds a partner. In conclusion, Lordstown Motors is facing significant challenges due to liquidity issues and uncertainty over its investment deal with Foxconn. Lordstown Motors had previously warned of substantial doubt about its ability to continue as a going concern, citing liquidity issues. The net loss ballooned to $171.1 million in the quarter ended March 31, up from $89.6 million a year earlier. In February, it had announced that it had only made 37 trucks for sale and had recalled 19 vehicles delivered to customers or being used internally. The company had resumed production of the Endurance in March after a pause in February to address quality issues. Lordstown Motors and other EV makers have been struggling as access to capital tightens due to rising interest rates and mounting economic uncertainty. Shares were little changed, having hit a record low of 25 cents on Monday. Lordstown Motors had cash and cash equivalents of $108.1 million as of March 31, down from $203.6 million a year earlier. Foxconn has announced that it will use the factory to produce Fisker Inc’s PEAR electric compact car starting next year. Built for fleets and the modern worker, by Lordstown Motors. In May 2022, Lordstown Motors sold its Ohio factory to Foxconn for $230 million, excluding assets such as the hub motor assembly and battery pack lines. Discover the Endurance, an all-electric work truck with in-wheel hub motor technology. Lordstown Motors is currently in talks with the Apple Inc supplier, but has yet to reach a deal. The company has been struggling with liquidity issues and had earlier this week indicated that it might be forced to file for bankruptcy due to uncertainty over a $170 million investment deal with its major shareholder, Foxconn. Lordstown Motors, an electric vehicle (EV) maker based in Ohio, has reported a significant drop in its cash reserves and has warned that it may have to halt production of its Endurance electric pickup truck unless it finds a partner.
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