LORDSTOWN, Ohio (WKBN) – Lordstown Motors needs to work fast if it’s going to stay in business.
The company’s restated quarterly report included a warning about a ‘going concern’ yesterday.
Lordstown Motors needs more cash to survive and make it until it can start producing trucks it can sell.
The company could issue more stock or offer higher than normal interest rate bonds, which many call junk bonds because they carry high risk.
Jon Arnold of Jon Arnold Wealth Management believes raising money is going to be difficult for Lordstown Motors.
“The cat’s out of the bag. It’s too much negative publicity between not getting the Post Office contract (USPS), the SEC (Securities and Exchange Commission) problems and just normal work environment problems. I mean, they have normal problems that every business owner has, including me. So, you combine all of that together, you mix that milkshake up and it’s not going to taste good,” Arnold said.
Lordstown Motors was not in contract negotiations for the USPS vehicle order mentioned by Arnold, however, Cincinnati-based Workhorse owns a 10% share of Lordstown Motors.
Jon Arnold believes General Motors could step back in and buy the plant to make its electric vehicles.