A former partner of Lordstown Motors Corp (NASDAQ: RIDE) is distancing itself amid the struggles the company faces and the resignation of its CEO and CFO.
What happened: A post on Twitter Highlighted Lordstown ends its collaboration with Camping World Holdings Inc (NYSE: CWH) to focus on short-term survival. The relationship with Camping World appears to be over, according to its CEO Marcus Lemonis.
“We are launching the electric world with an incredible assortment from all over the world. Lordstown Motors will not be part of this ”, Lemonis mentionned.
Lemonis’ comments seemed to back up that Lordstown Motors had put its campervan and motorhome efforts on the back burner as it faces cash flow issues for its Lordstown Endurance electric van.
“We don’t work with them,” Lemonis replied to a user questioning a relationship between the two companies. This comment suggests that Camping World has ended its ties with the ailing electric vehicle maker.
Related Link: Lordstown Motors Overhaul Management; The CEO, the CFO will resign
Why this is important: A joint press conference in December 2020 highlighted the two companies working together.
Camping World said it will service Lordstown Motors’ vehicle at 170 locations across the United States and partner to provide the roadside nationwide.
“We can sell more than he can earn,” Lemonis said of the Endurance truck. “We thought our infrastructure would help Steve and Lordstown.”
Camping World has suggested that it could sell the truck at locations in the future. The companies have also joined in efforts to manufacture an electric motorhome / motorhome by the end of 2021.
A filing with the SEC Highlighted on Twitter shows that Camping World and Lordstown were “in talks” and may not have signed a real deal.
Benzinga contacted Lordstown Motors and Camping World Holdings and received no comment.
Price action: Camping World shares rose 3% to $ 37.84 on Monday. Lordstown Motors shares are down 4% to $ 10.20.
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