With Production Issues And An EV Pivot, Lordstown Motors Still Has $220 Million In Cash

Despite continued difficulties that forced Lordstown Motors to stop manufacture of its Endurance electric pickup after only six were delivered, the company announced on Monday that it will still have more than $220 million in cash at the end of 2022.

‍

Following the release of the report, shares were down roughly 4% in mid-morning trade on Monday.

‍

In November, Lordstown started shipping its first EV, the Endurance pickup truck. It had produced around 40 trucks by the end of February and had sent six to clients. Nevertheless, the business announced on February 23 that Endurance production had been paused to address performance and quality issues, and that it had recalled 19 of the trucks to fix an electrical connection that might cause the engines to stop suddenly while the trucks were being driven.

‍

Lordstown has $221.7 million in cash and short-term investments on hand as of December 31.

‍

The following figures from Lordstown's fourth-quarter results report are crucial:

‍

• Loss per share: 45 cents, versus a loss of 42 cents per share in the fourth quarter of 2021.
• 45 cents were lost per share, compared to 42 cents per share in the fourth quarter of 2021.
• Estimated revenue: $194,000. Lordstown had no income over the previous quarter. The company's net loss increased from $81.2 million to $102.3 million from the previous year. During the fourth quarter, Lordstown delivered three Endurance pickups to consumers.

‍

Along with Taiwanese contract maker Foxconn, who acquired Lordstown's plant and invested in the firm last year in a deal that might ultimately be valued up to $170 million if all goes as planned, the Ohio-based startup is starting to pivot to a new electric car program.

‍

According to Lordstown, Foxconn has already invested $52 million, of which $30 million is designated for a new electric vehicle platform that will include engineering and parts created by the Mobility in Harmony Consortium (MIH), a project that is led by Foxconn and aims to create an open architecture for electric vehicles.

‍

The following platform and vehicle program, according to Lordstown, are "essential" to its long-term goal.

‍

“With our asset-light business model and collaboration with Foxconn's EV ecosystem, which includes MIH, Lordstown Motors will be able to develop winning electric vehicles customized for a wide range of work applications while gaining cost benefits from scale,” Edward Hightower, CEO of Lordstown Motors, said.