The ousted founding father of bankrupt EV startup Lordstown Motors has launched a brand new firm referred to as LandX Motors, that prominently shows the identical electrical pickup truck he as soon as promised would beat Tesla, Ford and Common Motors to market.
Steve Burns, a self-described “serial entrepreneur,” purchased many of the remaining property of his former startup late final 12 months as a part of the Lordstown’s Chapter 11 chapter proceedings, together with a big chunk of its electrical pickup vehicles. On a new website for LandX Motors, he says this firm will chart “the future of mobility,” and claims he’ll construct an entire lineup of automobiles on the platform that underpins what was once referred to as the Endurance. Whereas LandX Motors doesn’t explicitly seek advice from the vehicles because the Endurance, a video on the web site exhibits EV vehicles which have the Lordstown badge.
An individual accustomed to the corporate’s plans informed TechCrunch that it’s not a lot in regards to the Endurance truck, however the underlying platform, software program and engineering behind it. Nonetheless, with the previous Lordstown vehicles taking part in a starring function on firm’s web site and video, it’s unclear simply how developed this plan is.
What’s not made clear on the web site is how Burns plans to crack a few of the greatest issues that Lordstown Motors by no means solved. Crucially, Lordstown Motors executives mentioned within the months earlier than submitting for chapter safety that the associated fee to construct the Endurance far exceeded the $60,000 retail value. The corporate additionally doesn’t say the place, or how, it plans to construct the vehicles. A LandX Motors spokesperson responded to an e-mail, however didn’t present any additional info and declined to reply questions.
This isn’t the primary time that Burns has began a brand new electrical car firm with ties to an outdated one. He based Lordstown Motors in 2019 after leaving a distinct struggling EV startup, Workhorse. He struck a take care of that firm to license the designs for a pickup truck mission that turned the Endurance.
He then bought a shuttered GM manufacturing facility in Lordstown, Ohio, and took Lordstown Motors public in a merger with a particular objective acquisition firm in 2020.
By early 2021, Lordstown Motors was below federal investigation for deceptive buyers through the merger course of about what number of orders it had secured for the Endurance. Burns and then-chief monetary officer Julio Rodriguez resigned after the corporate’s personal inner probe decided that they’d, in reality, made misleading statements.
The startup struggled and finally bought the manufacturing facility to iPhone-maker Foxconn. The Taiwanese electronics large began constructing Endurance vehicles in late 2022, however they have been shortly recalled, and the 2 corporations had a falling out. Lordstown filed for chapter safety in June 2023. The Securities and Trade Fee lately mentioned in courtroom filings that it’s seeking $45 million from the company for “violations of federal securities laws.”
Burns made tens of millions of dollars selling Lordstown stock throughout all of this. Late final 12 months, he bought the Lordstown property for about $10 million by a holding firm referred to as LAS Capital, which has investments in three different startups.
The brand new startup is a reunion even past the truck. Of the 16 workers who checklist LandX Motors as their employer on LinkedIn, 13 of them used to work at Lordstown Motors. Duane Hughes, the chief who changed Burns at Workhorse in 2019 (and was changed in 2021 amid that startup’s personal struggles), is on the paperwork filed with the state of Michigan. (Julio Rodriguez can be now the chief monetary officer of LAS Capital.)
“I believed then, and I believe even more today, in what we built at Lordstown. That’s why I bought back the assets and rehired most of the engineering team,” Burns told Autoweek in December.
