Workers install door hinges on the bodywork of a prototype Endurance electric pickup truck on June 21, 2021 at the Lordstown Motors assembly plant in Ohio.
Michael Wayland | CNBC
Start the attached electric truck Lordstown Motors on Thursday reaffirmed its plan to begin commercial production of the first vehicle this quarter and roll out its first customer deliveries later this year.
Lordstown CEO Edward Hightower said production of the Endurance pickup truck would be slow and largely dependent on available capital. He said the company only expects to produce about 500 vehicles by early 2023 – an extremely slow rate of production growth by industry standards.
Chief Financial Officer Adam Kroll said the company would need to raise “significantly more capital” to produce the initial 500 Endurance electric pickups.
Lordstown, along with it second quarter resultssaid its $236 million cash balance at the end of the first half was above internal expectations and widening the cash-strapped company’s runway — but not enough to fully fund its operations. export.
Shares of Lordstown rose about 9% in pre-market trading Thursday to about $3.30 a share. Shares are down about 15% this year and down 63% from a 52-week high of $8.93 per share. The company’s market capitalization is around $600 million.
The company reported its first-quarter operating profit of $61.3 million for the period ended June 30, despite not delivering any vehicles, thanks to profits related to the sale. factory in Ohio for contract manufacturers. Foxconn. Profits include a $101.7 million profit from the sale as well as a $18.4 million reimbursement for operating expenses from Foxconn.
Lordstown and Foxconn announced in November plans for the Taiwan-based company to buy the facility and a deal for the struggling startup’s pickup company Endurance. The deal was announced as Lordstown was in dire need of cash, delayed production of its pickups and was engulfed in controversy following the scandal. resignation of its CEO and founder Steve Burns earlier this year.
Lordstown, gone public in October 2020, is among a group of electric vehicle startups that have been listed through special purpose acquisitions, or SPACs, since the turn of the decade. The deals were initially celebrated by Wall Street and investors, but controversy, product delay, lack of finance and executive shake-ups sent shares of most companies plunging.
