By Dhirendra Tripathi
Investing.com — Lordstown Motors (NASDAQ:RIDE) shares were lower in Wednesday’s premarket, a day after the company warned investors that it is close to running out of cash and may go out of business during the next year.
Shares of the electric truck maker fell over 2% ahead of the open, after slumping 16% on Tuesday and continuing to drop in after hours trading.
Lordstown disclosed Tuesday that it did not have enough funding to start full commercial production of its planned electric pick-up truck and warned there is now "substantial doubt" about its ability to stay in business over the next 12 months.
In an amended annual report the company said it had $259.7 million in cash on hand as of March 31, after posting a net loss of $125.2 million over the previous three months.
It said it's ability to stay in business "is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial scale production and launch the sale of such vehicles." It is seeking additional financing but warned that it could not guarantee its attempts to raise more capital would be successful.
Lordstown Motors Lower Premarket Amid Concerns over Survival
Canadaâ€™s oil sands producers form alliance to achieve net-zero emissions by 2050
UPS expects about $100 billion in total revenue in 2023