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Lordstown Motors Corp (NASDAQ: RIDE) shares dropped another 18% on Wednesday following a 16.3% drop Tuesday after the company issued a “going concern” warning in its latest quarterly filing.
What Happened? Lordstown went public in October of 2020 after completing a SPAC merger. Roughly eight months later the company has legitimate concerns that it will be able to maintain operations for another year.
In its quarterly filing on Tuesday, which was late, Lordstown said it will need to raise more cash to successfully bring its EV truck Endurance to market.
“These conditions raise substantial doubt regarding our ability to continue as a going concern for a period of at least one year from the date of issuance of these unaudited condensed consolidated financial statements,” Lordstown said in the filing.