According to the Detroit Free Press, General GM sold its stake in Lordstown motors, an electric vehicle startup that has struggled to get its first vehicle, the electric pickup truck Endurance, to production.
The initial equity value of GM's 7.5 million shares of common stock was $75 million. In the fourth quarter of 2021, the automaker sold its stake.
Lordstown reported a widened loss of $81.2 million, or $0.42 per share, for the fourth quarter. During its earnings call on Monday, the startup shared its plans to produce and sell up to 3000 Endurance trucks over the next five years, with 500 of those expected to sell this year. If the company raised more money. Lordstown needed to raise another $250 million in order to build 500 trucks.
The updated guidance is far below what the former management promised investors in the lead up to the public listing.
When GM said it would be closing its Lordstown factory, Donald Trump took issue with it. Workhorse, an EV company that GM sold the plant to, is still struggling with its own Q4 earnings that showed a quarterly loss of $1.13 per share.
Workhorse's founder and former CEO, Steve Burns, started Lordstown Motors with plans to build electric trucks in the old GM factory, and GM invested $75 million in the company. It wasn't possible to get the factory off the ground.
After a series of dramas, including losing key leadership amidst production issues, Lordstown sold the factory to Apple for $230 million. The factory deal was not as far along as the leadership thought it would be, causing investors to cringe.
Dogs of Lordstown
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