LORDSTOWN, Ohio – Lordstown Motors‘ new government group needs to make one factor clear to the traders this week: The electrical car start-up has “actual workers at an actual plant.”

That would not must be mentioned for many firms, however the aspiring EV producer has been hemorrhaging money, it not too long ago warned traders that it might not have sufficient money available to outlive the following 12 months and it ousted its top two executives. The Securities and Change Fee has additionally opened and inquiry wanting into statements made by the corporate and executives about orders.

The message is a part of excursions this week for media, analysts, traders and others the corporate is looking “Lordstown Week.” It is meant to indicate that the embattled firm has made progress as the brand new government group seeks to boost funds to maintain it afloat.

Actual traders have not been so satisfied. Its shares have been reduce in half this 12 months, together with a roughly 3% decline this week.

Wall Avenue analysts who toured the power famous the corporate’s progress in gearing as much as produce its first EV, an electrical pickup truck referred to as the Endurance, in late-September. Additionally they famous some components of the plant nonetheless wanted important work and mentioned the occasion did not change their considerations in regards to the firm’s funds or long-term prospects.

“Whereas we largely observe constructive takeaways from the occasion, we nonetheless specific the identical considerations as earlier than concerning liquidity, path to scale and particularly the commercialization of the in-hub motors,” Morgan Stanley analyst Adam Jonas wrote in a observe to traders.

RBC Capital analyst Joseph Spak mentioned the agency believes “Lordstown has an extended street forward.” Spak famous the huge plant was “largely empty” however mentioned it may very well be an necessary asset as collateral for a mortgage that might assist quick up its funds.

Executives and workers at Lordstown’s plant on Monday persistently touted their expertise in addition to the worth of GM’s former plant, which it purchased for $20 million – a fraction of its total worth – in 2019.

“I’m very snug with the concept of change. And never solely I, however this management group and the board of administrators are very cognizant and perceive the necessity for change with a purpose to develop and set up a publicly traded firm,” mentioned Lordstown Chairwoman Angela Strand. Later including, “The factors to emphasise are a long time of expertise” in automotive, innovation and know-how.

Strand, who addressed media with out taking questions, is main Lordstown because the board searches for a permanent replacement for ex-CEO Steve Burns, a founder and former chairman of the corporate who was ousted final week.

Strand mentioned the corporate continues to guage “strategic companions” as a part of its seek for capital wanted to remain in operation. The corporate on June 8 warned traders that it might not have the ability to proceed as a “going concern,” citing “substantial doubt” about its capability to outlive the following 12 months.

She mentioned Lordstown is “persevering with our due diligence” in looking for a mortgage from the U.S. Division of Vitality. Burns final 12 months mentioned the corporate was looking for a $200 million mortgage from the Vitality Division’s Superior Expertise Autos Manufacturing mortgage program.

Lordstown additionally gave check drives in “beta” pickup prototypes in addition to a brand new army idea car based mostly on the Endurance platform. The rides within the prototype truck have been restricted to 45 mph because the truck is not completed but and the check drives have been on an uneven car parking zone, an worker mentioned.

Lordstown was seen by some as forward of different EV start-ups, largely because of its huge meeting plant. The take care of GM included a lot of the plant’s equipment in addition to help from the established automaker with suppliers and retooling the power.

The plant saved Lordstown billions of {dollars} and Burns beforehand described GM’s help as “invaluable.” But it surely’s straightforward to see that Lordstown doesn’t want your complete 6 million-square-foot plant at the moment.

Throughout the tour, giant areas of the plant appeared untouched since GM deserted the power two years in the past whereas different manufacturing areas remained empty or unfinished.

Most notably, the road and tools to provide the corporate’s distinctive “hub motors” that match into the wheels of the car to propel it was not anticipated to be put in in August, a month earlier than the beginning of manufacturing.

Rajeev Lamba, director of hub motors for Lordstown, mentioned the corporate is ready for the tools to be delivered from Malaysia. He mentioned a month is “adequate time” to go from supply to manufacturing as a result of the road has been examined abroad, nevertheless some have doubts.

Sam Abuelsamid, principal analyst with researcher Guidehouse Insights, mentioned such a decent timeframe “actually is problematic.” He cited quick timeframes by Tesla that led to CEO Elon Musk’s self-proclaimed “manufacturing hell.”

“The normal method is you put in tools and then you definitely spend a number of months fine-tuning it and operating components down there, ensuring all of the processes are working accurately, you are high quality processes are in place and coaching the workers, all of that stuff,” Abuelsamid mentioned. “It is not a very good signal that they have an inclination to put in motor line and go straight to manufacturing.”

Conventional automakers frequently retool plans and reuse components, however their lead as much as actual manufacturing can take months. For instance, Ford Motor started constructing its new electrical Mustang Mach-E crossover at a retooled plant in Mexico final February, roughly 9 months earlier than the car went on sale for customers.

“There’s a lot to be executed, no query,” Ian Upton, Lordstown director of manufacturing management and a former GM worker of twenty-two years, advised CNBC. “However I feel [the motor line] will probably be prepared. We are going to ramp gradual this fourth quarter.”

Burns final month mentioned manufacturing of the Endurance can be half of the two,200 automobiles beforehand anticipated with out extra funding. The corporate has mentioned it expects to start buyer deliveries within the fourth quarter.

There was excessive curiosity by traders in Lordstown when the corporate went public in October. However the pleasure fizzled this 12 months following modifications to enterprise plans and executives. To not point out, the SEC probe in addition to Ford unveiling the electric F-150 Lightning pickup, a cheaper competitor than the Endurance.

“Whereas the market alternative is giant and Lordstown’s truck obtained respectable preliminary curiosity from potential fleet prospects, we see appreciable uncertainty forward,” Deutsche Financial institution analyst Emmanuel Rosner wrote Monday in a observe. “Within the near-term, the corporate has encountered giant operational and provide chain challenges and materials value overruns in its aggressive ramp up in the direction of manufacturing, and is now in pressing want of capital.”

– CNBC’s Michael Bloom contributed to this report.