General Motors has bought its stake in struggling electrical pickup maker Lordstown Motors, TechCrunch has reported. It reportedly unloaded its 5 p.c funding (price $75 million initially) within the fourth quarter of 2021, as initially disclosed by The Detroit Free Press and confirmed by GM.
Lordstown not too long ago reported a lack of $81.2 million for the fourth quarter, and mentioned in an earnings name earlier this week that it deliberate to promote solely 3,000 of its Endurance electrical vehicles by way of 2023 — a far cry from the 32,000 it predicted when it went public by way of a SPAC deal again in 2020. It goals to construct 500 of these this yr, nevertheless it might want to elevate an extra $250 million to take action.
Last yr, Lordstown warned that it did not have sufficient money to provide its electrical vehicles. Later in 2021, the SEC introduced that it was investigating the agency, and then-CEO Steve Burns was subsequently pushed out after he was discovered to have lied concerning the variety of Endurance pre-orders.
GM bought concerned with Lordstown Motors after closing its Lordstown, Ohio plan in 2019, and promoting it to EV producer Workhorse, based by Burns. Burns subsequently began Lordstown Motors with the purpose constructing electrical pickups on the plant, and obtained $75 million in funding from GM. The concept was to observe the trail of Rivian and construct electrical pickups for companies, nevertheless it’s now in competing in a more durable market in opposition to giants like Ford, which not too long ago launched the F-150 Lightning pickup.
Lordstown Motors not too long ago revealed that it did not have sufficient money to final by way of to 2023, so it subsequently agreed to promote the Lordstown plant to Foxconn for $230 million and lease house in it. However, Lordstown mentioned that the deal isn’t as far alongside as they’d anticipated, a state of affairs that is compounding the corporate’s issues.
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