Lordstown Motors Finally Gets Some Good News

July 27, 2021
A large investment into the company may help keep it afloat.

June 27, 2021一After months of bad press and federal investigation, Lordstown Motors has found a buyer willing to purchase $400 million of the company’s shares, Reuters reported. 

Hedge fund YA II PN Ltd has committed to purchasing the shares over a three-year period, coming at a crucial time for the EV truck maker, the report said. 

"I was surprised," Erik Gordon, professor at the University of Michigan's Ross School of Business, told Reuters. "It's more like the knight in shining armor than the vulture at the carcass."

The agreement comes a month after Lordstown warned it may not be able to continue as a "going concern."

Gordon said the commitment creates a cushion of liquidity that could help the Ohio startup attract funding from others.

Sponsored Recommendations

How one auto shop was able to order 20% more parts

Learn how one auto shop talks about the benefit of using PartsTech in their shop.

Vehicle Inspection Checklist For Auto Shops

Vehicle inspections, whether digital or on paper, are crucial for auto shops, ensuring thorough assessments and fostering trust by transparently revealing a vehicle's condition...

6 Reasons Why A Digital Vehicle Inspection Is A Must-Have

In an era of growing technology and innovation, auto repair shops must keep pace with the latest advancements to meet customers preferences and remain competitive.

How Your Auto Shop Can Now Connect To 30 Tire Suppliers For Free

Yep! We have over 50 tire suppliers in our network. And PartsTech is the only platform where you can access more than 30 of those suppliers FREE OF CHARGE.