Lordstown Motors Corp (NASDAQ:RIDE) shares are trading lower by 18% at $9.21 after the company s amended annual filing mentioned going concerns that current cash levels are not enough to begin commercial production.
Following the filing, RBC Capital initiated coverage on Lordstown Motors with an Underperform rating and announced a price target of $5.
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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.
DETROIT/WASHINGTON Lordstown Motors Corp shares fell more than 18% on Wednesday, as investors awoke to a vastly different financial picture than the electric…