Lordstown Motors walks back comment about ‘binding’ orders

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Lordstown Motors

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LORDSTOWN, Ohio (WKBN) – Officials at Lordstown Motors are walking back comments made by the company’s president about how many orders they have for their electric vehicle.

Lordstown Motors President Rich Schmidt said Tuesday that the company has orders for the first two years of production.

In a filing Thursday with the U.S. Securities and Exchange Commission, company officials stated, “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. As previously disclosed in our Form 10-K/A for the year ended December 31, 2020, filed with the Securities and Exchange Commission on June 8, 2021, to date, we have engaged in limited marketing activities and we have no binding purchase orders or commitments from customers.”

An earlier SEC filing raised concerns about the company’s ability to move forward with production. After that, CEO Steve Burns and Chief Financial Officer Julio Rodriguez stepped down.

In a quarterly regulatory filing, the company said that the $587 million it had on hand as of March 31 isn’t enough to begin commercial production of its full-sized electric pickup, called the Endurance, at the former General Motors plant.

Lordstown named lead independent director Angela Strand as executive chairwoman Monday and said that she will oversee the organization’s transition until a permanent CEO is found. 

Recently, Lordstown Motors also announced that senior automotive executive John R. Whitcomb has joined the company as vice president of global commercial operations, effective June 21.

Whitcomb will be responsible for driving the company’s overall go-to-market strategy ahead of the start of production of the Lordstown Endurance in late-September 2021, according to the company’s website.

Lordstown Motors stock, trading under the name RIDE, has been volatile with each new announcement. As of Thursday afternoon, it sits at $10.24 a share, down 5.01%.

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