Lordstown Motors lands $400 million investment, startup says
Just when things started to look rather dark for the electric pickup truck startup, a new hedge fund raised its hand.
It all started with Gran Turismo. From those early PlayStation days, Sean was drawn to anything with four wheels. Prior to joining the Roadshow team, he was a freelance contributor for Motor Authority, The Car Connection and Green Car Reports. As for what's in the garage, Sean owns a 2016 Chevrolet SS, and yes, it has Holden badges.
Lordstown Motors, the Ohio-based startup aiming to produce its Endurance electric pickup trucks for commercial fleets, said on Monday hedge fund YA II PN Ltd. committed $400 million, should the firm need it. Reuters first reported the news Monday. The investment comes by way of stock purchases, if Lordstown shareholders approve the action, and follows a spate of dark financial news for the startup.
If approved and Lordstown chooses to trigger the option, the hedge fund will receive 35 million shares of Lordstown stock at a discount as part of the commitment. It certainly seems like the startup will need it. In its most recent financial report, when it confirmed it has no binding orders for its truck, the company said lack of capital to even start scale production remained a "going concern." During a media event in June, Lordstown executives said it was searching for additional investment.
Lordstown did not immediately return a request for comment on the news, but the firm last said it's continuing to work on preproduction setup and preparing for in-wheel hub motor production ahead of the Endurance's full production start.
Step inside Lordstown Motors and see the Endurance pickup