Posted on 06/27/2023 1:19:57 PM PDT by CFW
U.S. electric truck manufacturer Lordstown Motors (RIDE.O) filed for bankruptcy protection on Tuesday and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan's Foxconn (2354.TW).
Shares of Lordstown tumbled 35% in trading on the Nasdaq. The company's bankruptcy is not the first among the crop of EV startups that went public during the pandemic-era SPAC boom. But Lordstown was a high-profile member of that class because it was challenging the core of the legacy Detroit automakers' business of high-margin pickup trucks, and because of its location.
"The bankruptcy of Lordstown signals that the days of successful EV startups is in the rear-view mirror," said Thomas Hayes, chairman at hedge fund Great Hill Capital. "Moving forward it will be Tesla and the traditional incumbents ... that will duke it out for market share."
The automaker, named after the Ohio town where it is based, filed for Chapter 11 protection in a Delaware bankruptcy court. In the complaint, Lordstown accused Foxconn of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
(Excerpt) Read more at reuters.com ...
"Foxconn calls Lordstown Motors allegations in lawsuit 'malicious'"
https://www.zerohedge.com/markets/lordstown-motors-files-bankruptcy-shares-crash
"Lordstown Motors Files For Bankruptcy, Shares Crash"
Why would anyone invest in a company making a product that nobody wants???
Because there is probably a hope of a government bailout eventually, because our government policies are pushing for electric vehicles.
“… put itself up for sale…”
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I recommend that the DemocRAT National Committee buy this wonderful investment.
Lordstown Motors? Never heard of them.
“Why would anyone invest in a company making a product that nobody wants???”
Tesla stock up 4% today ...
The demand for these vehicles is so strong that the companies that make them are going out of business. Hmmm, that’s not what they teach in economics class.
This surprises no one
“The demand for these vehicles is so strong that the companies that make them are going out of business. “
-————REALLY?———————
Here are some top EV trucking companies123:
Tesla
BYD
Nikola Motors
Volvo
Diamler Trucks (Freightliner)
Kenworth
Peterbilt
Lion Electric
Mercedes-Benz
Volkswagen
Cummins
Did they even have a clay model made up when they sold this to investors and went public with their stock offering?
They tried to build a truck which got recalled. There’s not even 500 made. It’s been a disaster for years.
GM shut the Lordstown plant down and moved 100% of Chevy Cruze production to Mexico. I guess GM finally got sick and tired of the Democrat/Union mentality.
70+ years of Democrat/Union control in the area. Enjoy the SUCK Lordstown & Youngstown. Keep voting Democrat!!!!
P S. The steel mills ain’t coming back either!!
“Why would anyone invest in a company making a product that nobody wants?”
How else are you going to collect billions and billions in federal subsidies and kick back big bucks to Dem politicians?
Heh, you’ve been around a while-remember ol’ Willie Green around here, him and his choo choo trains? I see the same dynamic with electric vehicles.
Willie was all in on the train boondoggle in California when it was still a wet dream and hadn’t begun to suck taxpayer money the way EV BS does now.
“I recommend that the DemocRAT National Committee buy this wonderful investment.”
—
Maybe the Biden family could purchase the company. I see Hunter Biden excelling as a used car salesman. They seem to plenty of millions of dollars just rattling around in their numerous homes. All probably redirected from tax-payer funds sent oversees and then back into their banking accounts.
Lordstown has the most militant, crappy workforce in the entire US of A...
They were engaged in all kinds of fraud.
https://businessjournaldaily.com/another-class-action-lawsuit-filed-against-lordstown-motors/
Nikola Motors and Rivian are struggling. We know what's going on with Lordstown. Lion Electric is losing money.
Certainly, there is a market for electric trucks, but the impression from the media and the government (which are actually the same thing), is that electric vehicles are highly popular and the demand far exceeds supply. Electric trucks are here to stay, without a doubt, but they have a very long way to go before they are the dominant choice. Without government intervention, they may never be the preferred choice.
Companies that have a presence in EV's and gas engines will likely outlast many of these startups because they are not dependent completely on the EV market. Tesla seems to be the exception, but even they will need to keep innovating once the big players like Ford and GM make their big push.
In related EV news,
“Report: Ford to lay off 1,000 white-collar workers after losing big money on EVs in 2022”
I remember WillieGreen. He thought that trains were the solution to all of our problems. The EV fanatics have taken his place.
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