On Wednesday, we wrote about how Lordstown Motors stated that the company’s Endurance electric pickup truck would enter limited production later this year. The statements were made at a press conference on Tuesday, where Lordstown President Rich Schmidt told journalists that the company had “binding preorder” that would fund production until May 2022.
This happened just days after the company issued a going concern warning and a day after Lordstown then parted company with its CEO and CFO. But on Thursday morning, Lordstown sent the US Securities and Exchange Commission a new Form 8-K, revealing that, actually, those binding orders are nothing of the sort.
In the 8-K, Lordstown explains that since March 2021, it has been working with a company called ARI Global Fleet Management, which is owned by the Holman dealership group. Fleet management companies sometimes lease vehicles to their customers, and Lordstown and ARI have been working to “co-market and co-develop business opportunities with our respective customers” with the hope that ARI would persuade some of its leasing clients to order the Endurance EV pickup truck.
Since then, Lordstown says it has been trying to work with other fleet management companies as well as companies that upfit work trucks in order that they might then persuade their clients in turn to order fleets of Endurances. Lordstown says that these agreements typically run for three to five years and include a projected order schedule over that time.
However, Lordstown also says that the agreements “do not commit the counterparties to purchase vehicles.” Additionally it says that, with regard to Schmidt’s comments during the press conference, “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” and that, “to date, we have engaged in limited marketing activities and we have no binding purchase orders or commitments from customers.”