Lordstown Motors started a few years ago with the promise of building the commercial Endurance pick up truck.
The company attracted about $600 million in investments to allow it to go public last fall. However, CEO Steve Burns and Chief Financial Officer Julio Rodriguez stepped down after admitting one of the companies committed to buy a sizable number of the first trucks does not have the money to do so.
Lordstown Motors is now likely headed to court amid allegations of fraud.
Guidehouse Insights Energy Auto analyst Sam Abuelsamid said it’s not a surprise about the company, first because of the way the company landed its former General Motors car plant in Lordstown, Ohio.
“I’ve been skeptical of Lordstown’s prospects from the beginning,” Abuelsamid said.
“When GM got involved with Lordstown, it was probably more for political reasons, essentially to get (former President) Donald Trump off their back for closing the Lordstown assembly plant. They essentially gave the factory to Steve Burns for this new venture.”
Additionally, Lordstown Motors’ design puts electric motors on each wheel but it puts stress on the electric wiring unlike most of its competition.
“Chances are they’re probably going to end up winding down,” Abuelsamid said.