in 2021 June 21 At the Lordstown Motors assembly plant in Ohio, workers install door hinges on the body of the Endurance electric pickup prototype.
Michael Wayland | CNBC
Faulty start of electric truck Lordstown Motors On Thursday, it reaffirmed plans to start commercial production of its first car this quarter, with the first deliveries to customers by the end of the year.
Lordstown CEO Edward Hightower said production of the Endurance pickup will be slow and largely dependent on capital availability. He said the company hopes to produce around 500 vehicles by 2023. of the beginning is a very slow increase in production by industry standards.
CFO Adam Kroll said Lordstown will need to raise “a lot more capital” to build the initial 500 Endurance electric pickups, though the company predicts it will take less money than previously thought.
Shares of Lordstown jumped as much as 27% to $3.73 per share on Thursday morning. Shares are down about 15% this year and 58% off their 52-week high of $8.93 a share. The company’s market cap is approximately $740 million.
The company said it would need to raise between $50 million and $75 million this year, down from an earlier expectation of $150 million. Lordstown will need additional capital in 2023, Kroll said.
Lordstown, near it second quarter resultssaid its cash balance at the end of the first half was 236 million. USD, exceeded internal expectations and extends the cash-strapped company’s runway, but is not enough to finance production.
The company reported a first quarter of 61.3 million. Foxconn. The profit included 101.7 million. USD profit from sales and 18.4 million USD operating expense reimbursement from Foxconn.
Lordstown and Foxconn in November announced plans for the Taiwan-based company to acquire the facility and an agreement for the company to manufacture the struggling startup’s Endurance pickup truck. The deal was announced as Lordstown needed cash, delaying production of its pickup truck and causing controversy after its CEO and founder resigned Steve Burns earlier this year.
Lordstown, who went publicly in 2020 October monthSince the start of the decade, it has been one of a group of electric vehicle startups to go public through special purpose acquisition companies, or SPACs. The deals were initially approved by Wall Street and investors, however disagreements, product delays, lack of funding and most companies’ shares fell sharply due to management changes.
Lordstown was originally expected to be one of the first, if not the first, company to release an electric pickup, with initial estimates as early as 2020. General motors, Rivian Automotive and Ford engine all beat the company to market due to internal issues and delays with Endurance.
Ford’s electric F-150 is perfectly positioned to compete with the Endurance for the commercial pickup market. Ford’s F-150 electric pickup starts at about $23,000 less than the Endurance and has first-mover advantage and the backing of a well-funded company.