Lordstown Motors now says that it has no binding orders for EV truck

Lordstown Motors now says that it has no binding orders for EV truck

Enlarge / In June 2020, Lordstown held an hour-long election rally for the Trump marketing campaign disguised as an occasion to unveil the Endurance electrical pickup truck.

Matthew Hatcher/Bloomberg through Getty Pictures

On Wednesday, we wrote about how Lordstown Motors said that the corporate’s Endurance electrical pickup truck would enter restricted manufacturing later this 12 months. The statements have been made at a press convention on Tuesday, the place Lordstown President Wealthy Schmidt instructed journalists that the corporate had “binding orders” that may fund manufacturing till Could 2022.

This occurred simply days after the corporate issued a going concern warning and a day after Lordstown then parted firm with its CEO and CFO. However on Thursday morning, Lordstown despatched the US Securities and Alternate Fee a brand new Kind 8-Ok, revealing that, really, these binding orders are nothing of the kind.

Within the 8-Ok, Lordstown explains that since March 2021, it has been working with an organization known as ARI World Fleet Administration, which is owned by the Holman dealership group. Fleet administration corporations typically lease automobiles to their clients, and Lordstown and ARI have been working to “co-market and co-develop enterprise alternatives with our respective clients” with the hope that ARI would persuade a few of its leasing shoppers to order the Endurance EV pickup truck.

Since then, Lordstown says it has been attempting to work with different fleet administration corporations in addition to corporations that upfit work vans so that they may then persuade their shoppers in flip to order fleets of Endurances. Lordstown says that these agreements sometimes run for 3 to 5 years and embrace a projected order schedule over that point.

Nevertheless, Lordstown additionally says that the agreements “don’t commit the counterparties to buy automobiles.” Moreover it says that, with regard to Schmidt’s feedback in the course of the press convention, “though these automobile buy agreements present us with a major indicator of demand for the Endurance, these agreements don’t characterize binding buy orders or different agency buy commitments” and that, “up to now, we’ve engaged in restricted advertising and marketing actions and we’ve no binding buy orders or commitments from clients.”

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