Time to battle the big players.
Lordstown Motors, the Ohio-based electric pickup truck manufacturer, has more good news following the late June reveal of its near production-ready first model. The company has just announced it has entered into a definitive merger agreement with DiamondPeak Holdings Corp., a special purpose acquisition company that's already listed on the NASDAQ stock exchange. The purpose of the merger is quite obvious: Lordstown Motors is going public.
Once the transaction is fully completed, the combined corporate entity will officially become known as Lordstown Motors Corp. and its new ticker symbol will be "RIDE." Why is this merger a big deal for the automaker? Aside from being publically listed, an estimated $675 million in gross proceeds are expected from the transaction, money that'll be pumped directly into Endurance truck production.
That transaction already includes $75 million worth of investments from General Motors, the previous owner of the Lordstown Assembly Plant, a massive 6.2 million square foot facility capable of producing more than 600,000 EVs every year. The combined values of both companies are an estimated $1.6 billion and the motivation to complete the deal is high. Both sides intend for the transaction to close by the end of this year. The timing of this announcement should not come as a major surprise with Lordstown claiming it has secured $1.4 billion of pre-orders for the Endurance.
Another key factor is that the all-electric pickup truck market is heating up fast. Not only is there the upcoming Tesla Cybertruck, but also the Rivian R1T, Nikola Badger, and fully electrified versions of the Ford F-150 and Chevrolet Silverado. A Ram 1500 EV is also supposedly in the works.
"We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition," said Lordstown Motors founder and CEO Steve Burns. "We are uniquely positioned to be a leader in the industry, with our first vehicle, the revolutionary Lordstown Endurance. Our platform is rooted in sustainability, and the entire Lordstown team is committed to ensuring we contribute to a healthier planet for generations to come."
As the final pieces of the deal are put into place, plans for the LM Endurance to enter production appear to be still on track to begin this coming January. Priced from $52,500, the Endurance will be less expensive than the R1T but still more than the Cybertruck, which begins at $39,000.