Lordstown Motors has been having a tough time recently. The Ohio-based electric truck startup was accused of misleading investors about the extent of its order books, leading to an investigation by the US Securities and Exchange Commission. This in turn led the company to issue a “going concern” warning, followed by the departure of its CEO and CFO.
But on Tuesday, a day after the executive resignations, the company stated that limited production of its Endurance work truck will begin later this year. Lordstown’s president Rich Schmidt told journalists at a press event that there were enough “binding orders” to fund this limited production until May 2022, according to TechCrunch.
Schmidt said that Lordstown has more than $400 million in the bank, but it will need extra investment to produce more than 20,000 EVs or continue operations beyond next May. The company raised $675 million in October 2020 after merging with a special-purpose acquisition company.
“It’s a new day at Lordstown, and there are no disruptions and will be no disruptions to our day-to-day operations,” said executive chairwoman Angela Stroud. But Lordstown is shelving some other projects to focus on the Endurance, including an electric van that would have involved a collaboration with RV-maker Camping World.