By Dhirendra Tripathi
Investing.com -- Lordstown Motors (NASDAQ:RIDE) shares looked set for another rough day in the markets on Thursday after the company disclosed it has no binding purchase orders from customers.
The shares plunged more than 7% amid an unending flow of negative news from the company.
The company was forced to issue a clarification to the SEC after President Rich Schmidt told journalists Tuesday, “Currently, we have enough orders for production for '21 and '22".
Schmidt was speaking at an Automotive Press Association online media event.
"Those are firm orders we have for those two years," he said, according to a Reuters report on Tuesday.
The company clarified that it has signed purchase agreements and “. . .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”.
The beleaguered company recently appointed a new CEO and a CFO.
Last week, the company warned investors it was close to running out of cash and may go out of business next year.
It said it did not have enough funding to start full commercial production of its planned electric pick-up truck in September and warned there is now "substantial doubt" about its ability to stay in business over the next 12 months.
R.F. Lafferty analyst Jaime Perez has a ‘sell’ rating on Lordstown with a target of $3, 72% lower from its Wednesday’s close of $10.78.