Bankrupt Lordstown Motors Founder Buys Remaining Company Assets
Fitting with its now-delisted stock symbol ticker $RIDE, Lordstown Motors Corp. has been in for a rough ride. After building a mere three trucks in 2022, Lordstown’s fate was quickly encroaching. In June 2023, Lordstown Motors filed for Chapter 11 bankruptcy. Following its bankruptcy, the EV pickup manufacturer had to pay Karma Automotive $40 million thanks to a lawsuit regarding stolen intellectual property.
From there, Lordstown has gone relatively silent. However, with a new move from its founder and former CEO, the company’s future is now up in the air.
Founding Lordstown Motors Corp. back in 2018, Steve Burns led the company as its CEO until he left in 2021. Burns also left the company with then-CFO Julio Rodriguez. This move came amidst a report regarding inflated order numbers.
Flash forward two years, and an SEC document surfaced stating, “On September 29, 2023, the Selling Entities entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”) with LAS Capital and Mr. Stephen S. Burns, an individual, as guarantor of certain obligations of LAS Capital under the Asset Purchase Agreement.”
The document also mentioned Rodriguez, “Additionally, Mr. Julio Rodriguez, whom the Selling Entities understand is one of the indirect managers of LAS Capital, was the former Chief Financial Officer of the Company.”
LAS Capital’s primary shareholder is Steve Burns. The capital firm focuses on EV technology firms. “The companies within our venture benefit from a shared expertise in mechanical & software engineering, battery and propulsion technology, and EV production experience,” says the website’s homepage.
The deal for LAS Capital to purchase Lordstown Motors’ remnants has been reported to be $10 million. LAS Capital has already put $1,000,000 of the purchase in an escrow account.
While the future of Lordstown is now up to speculation, its Endurance truck wasn’t entirely bad on paper. It offered 550 horsepower, delivered through four in-wheel motors. The Endurance could sprint to sixty in 6.3 seconds and tow 8,000 pounds.
However, its primary caveat was an uncompetitive price tag of $65,060 and a limited EPA range of 174 miles. For this vehicle to return from the dead, its range must increase, and its price must drop to gain significant traction.
Gallery: 2023 Lordstown Endurance
Sources: 21 WFMJ, SEC
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