By on June 18, 2021

We’ve got more bad news about Lordstown Motors. Following several volleys of bad mojo ending with the departure of its upper management, the EV startup has informed the Securities and Exchange Commission (SEC) on Thursday that it doesn’t have any binding purchase orders or commitments.

That’s not what the company was saying several months ago. Hell, that wasn’t even what it said earlier this week when President Rich Schmidt told the Automotive Press Association the company had enough orders to support two years of production. Since the ability to sell automobiles is a somewhat relevant factor in an automaker’s long-term success, we’re getting concerned that Lordstown isn’t long for this world. 

While we cannot say if the company will break its promise of delivering its all-electric Endurance pickup by September, automakers (including the well-established ones) have a habit of delaying debuts. This is especially true of EV startups and basically unavoidable among those that are never going to get off the ground — which seems to be the direction Lordstown is heading.

Despite Schmidt trying to smooth things over with investors, these SEC filings have been incredibly damning. Last week, a filing revealed that the aspiring automaker probably didn’t have sufficient capital to commence production as planned. There were even claims it might not have enough dough to remain operational. But the company specifically merged with DiamondPeak Holdings (a special purpose acquisition company) to get on NASDAQ and goose its IPO.

Thursday’s SEC documents offered more unsettling information. After explaining the importance of marketing strategy in regard to fleet management companies, it noted that it had entered into purchasing agreements that would “establish the terms and conditions of potential future purchases and other cooperation.”

It then explained the general rules they were operating under:

·Term of 3 to 5 years;

·Designation of Lordstown Motors as a preferred supplier;

·Order procedures, including forecasting, confirmation, statusing, and cancellation procedures;

·Down payment terms, which are generally 5 [percent] down 90 days prior to the requested delivery date;

·Invoicing, delivery and payment terms; and

·Other customary terms, including warranties, indemnification, intellectual property use, insurance and confidentiality terms.

These vehicle purchase agreements generally include a projected buyer order schedule over the 3 to 5 year life of the agreement, and may be terminated by either party at will on 30 days’ notice. They do not commit the counterparties to purchase vehicles, but we believe that they provide us with a significant indicator of demand for the Endurance.

To clarify recent remarks by company executives at the Automotive Press Association online media event on June 15, although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments.

That last paragraph is the most important because it’s the one where the company effectively admits to lying. Though I suppose the term “binding” could be used as a semantic defense. But this remains a bad situation since the automaker really doesn’t have anything to show for itself. There apparently aren’t any binding orders, it’s leasing the intellectual property required for the pickup from Workhorse, one of its prototypes recently burned down, and GM has an option to repurchase the facility and all transferred assets of the factory if the company cannot repay the $40 million loan and has to abandon ship.

Meanwhile, Lordstown has invited investors, analysts, and journalists to its factory next week (which had a massive solar array installed outside this year) to tour the grounds and talk about the truck. But the SEC filing stated that the company would be postponing its annual shareholder’s meeting until August 19th — which is a full month behind schedule and likely a bad omen.

[Images: Lordstown Motors]

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27 Comments on “Lordstown Deathwatch: Another Unflattering SEC Filing Emerges...”


  • avatar
    Cicero

    I’d like to see a “clarification” as to why Lordstown spent a boatload of money on acres of showy solar panels when it doesn’t have enough cash on hand to build an actual truck. It seems like some questionable management decisions are afoot.

    • 0 avatar
      SCE to AUX

      Beat me to it.

      They will never make a production truck. Investors, employees, suppliers, and reservation holders will all jump ship.

    • 0 avatar
      gmsteelerz

      The solar panels were put in by GM. They were there before Lordsttown Motors came.

    • 0 avatar
      stuki

      They’ve had plenty of money to build a truck.

      What they, like pretty much everyone with sufficient money in our little financialized dystopia, is lacking, and has been lacking all along, is the competence to do anything whatsoever useful whatsoever.

      The whole point of financialization and money printing was, and everywhere is, after all, specifically: To rob the competent and productive, in order to hand the stolen trillions, by way of unearned “asset appreciation,” to the rankest of rank idiots on offer in the land. Until those potentially competent enough to do something useful, don’t have any money. While those with all the money, can hardly even read. It’s a policy which has worked splendidly so far.

  • avatar
    schmitt trigger

    In the book “Swim with the shark without being eaten alive” or its follow up books, Harvey McKay argued that “the fancier the chandelier in the main boardroom, the fastest one must run away from that place”.

    In plain English, companies which spend money and time on glitter to impress fools, will not have neither the money nor the time to actually deliver what they are promising.

  • avatar
    FreedMike

    Next up: Chinese investor.

  • avatar
    IH_Fever

    Hmm, who knew talking a big game and never producing anything would be bad for business? The shiny solar panels are a nice distraction though.

    • 0 avatar
      aja8888

      I wonder if those panels are actually connected and functioning?

      • 0 avatar
        stuki

        It wouldn’t matter. Noone there has the brains to even notice whether they are or not. Nor does any “investor.” In anything, anywhere in the Once-Was-West, anymore. 50 years post Nixon going 100% full retard, it truly is idiots all the way down by now.

  • avatar
    Imagefont

    Burns has a perfect record: he’s made a lot of money and has never produced anything.

    • 0 avatar
      stuki

      Duh!

      Substitute “Darned Near Anyone who has ‘Made’ lots of money” in our totalitarian, fully financialized dystopia since Nixon’s retard moment, for “Burns,” and the statement is still equally true.

      It’s what any sufficiently singleminded pursuit of “From the competent and productive, to the connected and useless” will always lead to.

    • 0 avatar
      swester

      No wonder Trump and Pence were so quick to back Lordstown as one of their big PR stunts – it’s familiar territory!

  • avatar
    EBFlex

    Weird. It’s almost as if people don’t want EVs. You’d think if EVs were as hot as automotive blogs, the government, etc say they are, a company like this should have no problems let alone nobody willing to buy their product.

    • 0 avatar
      Roscoe

      A post so stupid it barely deserves comment, so I’ll just use one word: Tesla.

    • 0 avatar
      Scoutdude

      This has nothing to do with EV’s, it is about fleets not being willing to commit to purchase a vehicle that doesn’t exist from a company that hasn’t ever produced a vehicle.

      Many fleets will purchase the EV-150 and EV Silverado because they have much more trust in an established company. They also prefer commonality with the rest of the vehicles in their fleet, for transfer of existing equipment, availability of new equipment, and an established, known dealer net work.

      • 0 avatar
        EBFlex

        “ it is about fleets not being willing to commit to purchase a vehicle that doesn’t exist from a company that hasn’t ever produced a vehicle.”

        That’s never stopped the EV sycophants in the past. Look at Tesla. Or any of the other EV brands.

  • avatar
    ToolGuy

    If I found myself anywhere near Lordstown OH, I would go here:
    http://www.lehmans.com/

    And I would eat here:
    http://www.dhgroup.com/restaurants/dutch-valley-sugarcreek-oh

  • avatar
    jpolicke

    Too bad, I liked this truck. I think they were going at it from the wrong direction; the majority of work trucks I see are bare bones, get-it-cheap, beat it up, low spec models. Lordstown isn’t selling panel trucks to delivery companies here. Get these models onto people’s driveways first, then build a model for fleet sales.

  • avatar
    GoFaster58

    What a shame! It’s a beautiful truck.

  • avatar
    Lichtronamo

    Lordstown was DOA the minute Ford and GM announced plans for the F-150 Lightning and the Silverado EV. Why buy a truck from an unproven start up when the two biggest players in pickups (who also know how to design/build said pickups) have it covered?

  • avatar
    wolfwagen

    Latest news: Executives sold millions of dollars worth of stock in February before Lordstown earning report.
    Fecal matter meet air moving device

    Stick a fork in Lordstown, they are finished (the company and the area)

  • avatar
    Mustangfast

    I don’t think much could be less flattering than that grill…also for solar panels, they are typically leased and offset electricity costs, so probably wasn’t a capital expense no matter who installed them

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