Why Lordstown Motors Shares Are Plummeting Today

An amended filing from Lordstown Motors RIDE that cites going concerns to enter production of the Lordstown Endurance pickup truck is sending shares down.

What Happened: Shares of Lordstown Motors collapsed at close as it was revealed the company filed an amended 10K.

In the filing, the company cites a going concern to continue operations. The company needs to obtain additional funding to ramp up production for the Endurance pickup truck.

“Our current budget only provides for a limited commencement of production in 2021,” the filing reads. Additional funding must be secure for production in 2022 and beyond.

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Why It’s Important: Shares of Lordstown Motors fell in May when the company reported a net loss of $125 million in the first quarter. The company said at the time it had $587 million in cash as of March 31, 2021.

The company said it needed to raise additional capital to meet production goals. At that time, the company said production would be limited to 50% of its prior expectations for 2021 Endurance units.

Lordstown Motors received a delisting notice from the Nasdaq recently for not filing its quarterly report with the SEC.

The company had previously announced it will host analysts, investors, customers and partners during the week of June 21 for factor tours and test drives of the Endurance. No update on this event has been given by the company.

Price Action: Shares of Lordstown Motors closed Tuesday at $11.22, down 16% for the day after hitting a daily high of $15.80.

Shares are down an additional 8% after-hours to $10.34 at time of writing.