Lordstown Motors Warning Highlights Cash Needs of EV Startups
Public Policy & Regulation attorney Taite McDonald was quoted in a Wall Street Journal article highlighting the difficulties for startups in the auto industry, particularly in the electric-vehicle (EV) market, to accrue enough capital to develop new models, prep factories and begin producing vehicles. EV startups can tap private equity and tech firms to help them stay afloat, but they also have the option to try and secure a loan from an Energy Department program.
However, Ms. McDonald noted that a basic requirement of applicants is to be financially viable without further assistance. “Companies that can’t meet that test are not likely to pass through the process,” she said.