Lordstown Motors said Monday it expects to spend $115 million more than expected in 2021, making it necessary for the company to return to capital markets to raise money to meet its fall production plans.
The Youngstown, Ohio-area manufacturer is ramping up for a late September production launch of its Endurance electric truck for the commercial fleet market.
Because of higher development, testing, parts and engineering costs, Lordstown Motors will produce about half the number of the vehicles it had expected to this fall without additional capital, said Steve Burns, CEO and chairman, during a Monday afternoon conference call.
"The pace of our production ramp will depend on our ability to secure additional funding," Burns said.
Sources for additional capital include asset-back financing, strategic investors, tax credits and grants, he said.
But even without additional capital, Lordstown Motors is expected to meet its top goal of being first to market with its full-size electric pickup truck this fall, Burns said.
How is Lordstown Motors getting to market so fast? For one, technology innovations such as the hub motor that drives the vehicle's tires.
"We believe the Endurance will be the simplest mass-produced vehicle ever made," Burns said Monday.
In addition, Lordstown Motors inherited billions of dollars of vehicle-building infrastructure from General Motors by buying its former assembly plant.
During the first quarter, Lordstown Motors lost $125.2 million, or 72 cents a diluted share. The company does not yet have commercial sales.
The company invested $53 million in its plant and operations during the first quarter and had $587 million in cash on March 31, the company said.
Burns also said his company is cooperating with the Securities and Exchange Commission and doing its own investigation of a negative report by a securities firm.
Shares of Lordstown Motors (RIDE) was down more than 6.5% to $8.74 in after-hours trading Monday evening. The company announced its first-quarter results after the market closed for the day.
