Lordstown Motors Has More Bad News To Report

Trucks / 4 Comments

Expectations have yet to be met.

Ohio-based Lordstown Motors continues to face difficult times, a fact that's clearer than ever following the release of its fiscal year 2021 results and outlook report earlier this week. The company says it expects to build only 3,000 examples of its Endurance EV pickup truck through next year. The first 500 units will begin production in the third quarter, a full year later than expected following going public in October 2020 via its special purpose acquisition company, or SPAC. The original plan was to build 2,000 trucks in its first year of operations. A total of 32,000 units were planned during its full year of assembly.

That clearly didn't happen and the stock market quickly reacted, and not in a good way. Shares dropped by up to 28 percent Monday afternoon and ultimately closed at a 20 percent decrease.

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On top of that, Lordstown reported a fourth-quarter 2021 net loss of $81.2 million and incurred $115 million in expenses. It doesn't take an economic genius to understand Lordstown has problems. Its top management said the goal is to raise $250 million this year alone to fund operations, and that includes machinery to actually produce trucks.

Last November, Lordstown announced a deal to sell its Ohio plant to iPhone maker Foxconn for $230 million. This is the same facility Lordstown purchased from GM a few years ago, but right now, raising cash is the chief goal. However, the deal with Foxconn has yet to be finalized. The two companies continue to be in negotiations about possibly co-developing EVs together.

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"I believe the Foxconn partnership is a critical step in unlocking the full potential of the Lordstown facility and brings multiple benefits to LMC," said Lordstown CEO Dan Ninivaggi. "Our ongoing discussions with Foxconn are focused on reaching a definitive agreement for the joint development of future vehicles off the MIH platform."

There was a time when many were led to believe the Endurance was going to be one of the first EV trucks on the market. An investigative report exposing potential fraud changed that and eventually led to the resignation of the carmaker's founder and now-former CEO, Steve Burns. Since then, EV trucks like the Ford F-150 Lightning and Chevy Silverado EV have been revealed. The former will be arriving in dealerships nationwide this spring.

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