If you haven't been following, Lordstown Motors is in a bit of a mess at the moment. Sadly, this comes as no surprise since it seems to be the way it goes for many an electric vehicle startup. Now, a recent regulatory filing sheds new light on the situation.
Lordstown President Rich Schmidt just made it clear to the public that the electric truck maker has already secured sales for enough vehicles to cover production for 2021 and 2022. That's a pretty epic feat for a startup that hasn't yet sold an electric truck.
According to Autoblog, within less than 48 hours of Schmidt's assurance that orders are "firm," a new regulatory filing showed that Lordstown doesn't actually have any binding orders. As the publication puts it, "solid order figures aren't actually solid." Lordstown wrote in its filing with the U.S. Securities and Exchange Commission (SEC) via Autoblog:
"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."
So basically, when Schmidt reassured the Automotive Press Association that Lordstown has enough orders for 2021 and 2022 production, and more specifically, that those orders are actually "firm," he was saying the opposite of what the official filing reveals. Autoblog says Schmidt admitted to not knowing the "exact facts" and "legal aspects" of the "firm" orders.
As we previously reported, Lordstown also said recently that it may not have the financial backing to move forward. In addition, CEO Steve Burns and CFO Julio Rodriguez resigned. The whole Lordstown situation recently came to light after short-selling research firm Hindenburg, the firm that also exposed concerns surrounding Nikola, released a report claiming Lordstown is misleading the public.