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Bloomberg News
June 8, 2021 4:00pm

63859


The Detroit Free Press
June 9, 2021

General Motors is mum on a high-profile, albeit small investment in startup electric truck maker Lordstown Motors as the startup teeters on the edge of extinction.

In a government filing Tuesday, Lordstown Motors said it doesn't have enough money to start commercial production and it has doubts whether it can continue as a going concern through the end of the year. "Going concern" is a legal phrase companies use to warn investors they might not make it.

GM owns 7.5 million shares of Class A common stock in exchange for equity value of $75 million in Lordstown Motors. It's a small stake of less than 5%.

In reaction to Tuesday's filing, GM spokesman Jim Cain said, "We will not be providing a comment." But Cain added that GM has not sold its shares in Lordstown Motors.








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Why would they?
 

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Will GM step in and save the Lordstown plant?
Buy their old plant back? The old GM would do that and for twice the money. Fortunately, MB is at the helm and saying "scram". I'd imagine this means the claims against them are legitimate and there really isn't anything viable to buy - GM will do well to steer clear of this mess!

And I will say I was not excited and skeptical regarding the investment company, that banks on failure, calling them out. I still don't like their mission, but if legit then I guess I have to accept what they are doing.
 

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And I will say I was not excited and skeptical regarding the investment company, that banks on failure, calling them out. I still don't like their mission, but if legit then I guess I have to accept what they are doing.
I like it. There is aboslutely nothing wrong with calling out fraud. Lordstowns fundamentals, just like Nikola's, never added up. There should be MORE of this in the market. I say Kudos to them for doing the work and making the right call. There is WAAAYYYYYY to much hype in the market right now.......

EDIT: Hindenberg Research is the fund the shorted both Nikola & Lordstown. Mary Barra invested in both......
 

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Buy their old plant back? The old GM would do that and for twice the money. Fortunately, MB is at the helm and saying "scram". I'd imagine this means the claims against them are legitimate and there really isn't anything viable to buy - GM will do well to steer clear of this mess!

And I will say I was not excited and skeptical regarding the investment company, that banks on failure, calling them out. I still don't like their mission, but if legit then I guess I have to accept what they are doing.
But what if GM can get Lordstown back for cheap?

Close Lordstown plant
Sell Lordstown plant to doomed from the start start up
Buy back Lordstown plant
...
Profit?

😂
 

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But what if GM can get Lordstown back for cheap?

Close Lordstown plant
Sell Lordstown plant to doomed from the start start up
Buy back Lordstown plant
...
Profit?

😂
Originally GM sold it for $20mil to Lordstown Motors. That was later forgiven in exchange for 4.5% (7.5mil shares) of the company. So if it goes under, GM got nothing for it. Net loss, ZERO profit.
 

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They weren't a real EV producer never were....the show truck was all nice and dandy, but have you passed any Lordstown Trucks on the road? Seen one in a parking lot? Nope.
 

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But what will they do with it? I assume they'd never have sold it if they needed it.
I was told GM Lordstown shut down because it used an outdated production line that was only suited to build compact cars, which obviously GM was no longer planning to produce, and the cost of ripping out the line and putting in a new one simply wasn't worth it.

If Lordstown Motors has installed a more modern line already...maybe it could be viable again for truck production? Just thinking out loud. I have no idea if Lordstown Motors has even done anything to the plant besides put up their signage.
 

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I like it. There is aboslutely nothing wrong with calling out fraud. Lordstowns fundamentals, just like Nikola's, never added up. There should be MORE of this in the market. I say Kudos to them for doing the work and making the right call. There is WAAAYYYYYY to much hype in the market right now.......

EDIT: Hindenberg Research is the fund the shorted both Nikola & Lordstown. Mary Barra invested in both......
Hindenberg Reseatch? Hindenberg?

 
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Perhaps not so "shocking" for the nascent EV world?
On a related/not-related note, my father was big into snowmobiles, he bought his first snowmobile in 1969 and even started a small replacement parts business that he ran on the side for 30+ years, so I've been in and around "snowmobiles" my entire life, anyway..........

Back in the late 1960's and early 1970's EVERYONE was getting into the snowmobile market, I'm sure there were 50-100 manufacturers; they dropped like flies, by the late 1970's early 1980's only a handful remained. Some of the last few that died were Kawasaki, John Deere and Scorpion - Today only Arctic Cat, Polaris, Ski-Doo and Yamaha remain, those 4 were all strong/established brands in the late 1960's and early 1970's.

For me, it's almost like watching a movie I've already saw.

They weren't a real EV producer never were....the show truck was all nice and dandy, but have you passed any Lordstown Trucks on the road? Seen one in a parking lot? Nope.
If you look carefully the platform is essentially a K2XX Chevy Silverado.
 

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So the stock plummeted and the company looks like it could be heading towards bankruptcy.


That means in the next month or two the stock should go up about 10,000%, as the Reddit online trading crowd piles into this just like they did into AMC and GameStop.
 

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I was told GM Lordstown shut down because it used an outdated production line that was only suited to build compact cars, which obviously GM was no longer planning to produce, and the cost of ripping out the line and putting in a new one simply wasn't worth it.

If Lordstown Motors has installed a more modern line already...maybe it could be viable again for truck production? Just thinking out loud. I have no idea if Lordstown Motors has even done anything to the plant besides put up their signage.
If that's the case, perhaps it will pique GM's interest!
 
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