Lordstown Motors receives $400 million investment from hedge fund
Detroit Lordstown Motors Corp. has received a $400 million equity investment from a New Jersey-based hedge fund to help the startup launch and accelerate production of its Endurance electric truck in September.
The Ohio-based startup and YA II PN Ltd., a fund managed by New Jersey-based Yorkville Advisors Global LP, formed an equity purchase agreement on July 23 in which YA agreed to purchase up to $400 million of Lordstown s Class A common stock with the price equaling or exceeding $7.48 per share, according to a filing Monday with the Securities and Exchange Commission.
Lordstown s stock jumped 10% after the announcement, but then declined throughout the trading session and closed down 2.5% at $7.29 per share. The investment comes after months of struggle for the startup, which told the SEC last month it might not survive the next year without additional funding. Lordstown is one of several aut
Author Bio
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years. When he isn’t writing, he is usually out for a run, or relaxing to the music of the Grateful Dead.
What happened
Shares of clean energy companies, including electric vehicle names, have been surging the past month. The moves reversed an extended downtrend as the sector went out of favor with investors earlier this year. Today, shares of
Global Microchip Shortage Complicates EV Startup Success
Despite a national push towards electric vehicle implementation, the coronavirus pandemic has led to a microchip scarcity, triggering production challenges for many starting companies in the EV industry.
May 26, 2021 • (TNS) The global semiconductor shortage that has idled plant after plant and delayed product launches by long-established automakers comes in a year when several electric vehicle startups hope to launch their own vehicles.
Lordstown Motors Corp. on Monday offered a glimpse into the impact of such pandemic-induced supply-chain constraints and their costs on these startups. Shares of the Ohio EV company were falling more than 9 percent in post-market trading after it slashed its production goals for the year if it does not receive additional funding.
Canoo, a U.S. EV startup, said it plans to launch an all-electric pod-like pickup truck in 2023, adding to a fast-growing choice of electric vehicles available to American buyers
Author Bio
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years. When he isn’t writing, he is usually out for a run, or relaxing to the music of the Grateful Dead.
What happened
Shares of electric-truck maker
Lordstown Motors (NASDAQ:RIDE) had jumped 14% as of 12:45 p.m. EST today, on the heels of a second analyst upgrade in two weeks, and a filing showing an increase in orders.