Lordstown Motors says no binding offers for new electric pickup truck
Still no binding orders.
Electric pickup truck maker Lordstown Motors, which terminated its founder and its chief financial officer last weekend, found itself walking back comments its president made Wednesday saying the Northeast Ohio company has firm orders for its vehicle.
The company also postponed its 2021 shareholders meeting to Aug. 19 from June 17. Lordstown Motors plans to hold what it calls Lordstown Week starting Monday, when it will show off its factory, prototype pickup trucks, and have company executives meet with shareholders, suppliers, customers and other invited guests.
In a regulatory filing Thursday with the Securities and Exchange Commission, Lordstown Motors said it has no binding offers for its Endurance full-size pickup truck, which the company says it hope to begin building in limited numbers later this year.
The filing sent share prices falling Thursday. Shares closed down 47 cents, or 4.4%, to $10.31. Shares had rallied on Tuesday after its company president said at an online press event that Lordstown Motors had businesses committed to buying Endurance pickups, which are still in the prototype stage. Over the past 52 weeks, shares have ranged from a low of $6.69 to a high of $31.80.
The company said Thursday it does have what it calls vehicle purchase agreements. (Its business plans calls for selling the Endurance to fleet operators.)
No commitments ‘but significant indicator of demand’
“They (vehicle purchase agreements) do not commit the counterparties to purchase vehicles, but we believe that they provide us with a significant indicator of demand for the Endurance,” the company said in its SEC filing.
“To clarify recent remarks by company executives at the Automotive Press Association online media event on June 15, although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments,” Lordstown Motors said. The company said it previously disclosed, as recently as June 8, that it does not have binding purchase agreements or commitments from customers.
On Sunday, Lordstown Motors founder and chief executive officer Steve Burns resigned from the company. Also resigning was Julio Rodriguez, the chief financial officer. The company,
in announcing the resignations Monday, made temporary appointments to the positions while it searches for permanent replacements.
While not citing reasons for the resignations, Lordstown Motors separately said the company had made inaccurate statements about non-binding pre-orders of the Endurance.
The resignations and other announcements this week follow the company
saying earlier in June it needs significant infusions of money to meet its goals and remain in operation. The company said it is working to secure the needed capital, including applying for loans.
Lordstown Motors owns the former massive General Motors plant in Trumbull County. The GM plant, which dates back to the 1960s, was once a key employer in the Mahoning Valley region, with thousands of workers there at its peak.
Jim Mackinnon covers business. He can be reached at 330-996-3544 or firstname.lastname@example.org. Follow him @JimMackinnonABJ on Twitter or www.facebook.com/JimMackinnonABJ.