When it decided to make the futuristic Endurance EV truck, Robstown Motors was one of the most interesting companies in the EV pickup market. By the time the company was ready to show off a working model, it was clear that other well-known automakers were also going to make battery-powered pickups. Since then, the company has had trouble making money. Lords town has had a long string of bad luck, if you can call it that. Its production ramp-up has been delayed, almost every car it has ever made has been recalled, and production has been stopped because of quality control problems. The car company is now saying that it won’t be able to keep making the Endurance without more money. In its 10-Q filing, Lords town Motors said, “We expect production of the Endurance to stop soon because of production delays from early January to mid-April 2023, the failure to find a strategic partner for the Endurance, and our very limited ability to raise capital in the current market environment.” There have been rumor’s for a long time that the company’s finances are in bad shape. Most recently, the company has hit an “impasse” with Taiwanese tech giant Foxconn, which had promised to invest $170 million in the car. Since then, Foxconn has said that Lords town’s breaking of the contract makes it impossible for it to close on a second round of funds. Foxconn is talking about a notice that Nasdaq sent to Lords town Motors recently. The notice says Lords town’s stock could be taken off the market if it doesn’t trade for at least $1 for 30 days in a row. Nasdaq says that the company must get back in line by October 16 by keeping a value of at least $1 for 10 days in a row. At the time this was written, a share of $RIDE was worth $0.36. Lords town says that Foxconn’s claims that they broke a contract are “without merit.” Even if that were true, it wouldn’t change how much money Lords town has. At the beginning of March, the company was expected to have $220 million in cash on hand. At the end of the quarter, it only had $176.7 million. It also said that since the beginning of 2023, it had lost a total of $171.7 million and still owed $998.9 million in liabilities. Lords town says that if it is “deprived of critical funding necessary for its operations,” it may have to stop doing business or think about going bankrupt.
