Workers set up door hinges to the physique shell of a prototype Endurance electrical pickup truck on June 21, 2021 at Lordstown Motors meeting plant in Ohio.
Michael Wayland | CNBC
Embattled electrical truck startup Lordstown Motors on Thursday reaffirmed plans to start business production of its first automobile this quarter and roll out the primary buyer deliveries by the tip of the yr.
Lordstown CEO Edward Hightower mentioned production of the Endurance pickup can be sluggish and largely reliant on capital availability. He mentioned the corporate solely expects to supply about 500 automobiles by early 2023 — an especially sluggish production ramp-up by business requirements.
CFO Adam Kroll mentioned the corporate might want to elevate “substantially more capital” to supply the preliminary 500 Endurance electrical pickups, although the corporate tasks it can want much less cash than beforehand thought.
The firm mentioned it might want to elevate between $50 million and $75 million this yr, down from earlier expectations of $150 million. Lordstown will want extra capital in 2023, Kroll mentioned.
Lordstown, alongside its second-quarter outcomes, mentioned its money stability of $236 million on the finish of the primary half of the yr was above inner expectations and extends the cash-strapped firm’s runway — however is not sufficient to fund production.
Lordstown’s inventory jumped roughly 12% at market open Thursday to about $3.30 a share. The inventory is down about 5% this yr and off 63% from its 52-week excessive of $8.93 a share. The firm’s market cap is roughly $600 million.
The firm reported its first quarterly working revenue of $61.3 million for the interval ended June 30, regardless of not delivering any automobiles, on features associated to the sale of its Ohio manufacturing facility to contract producer Foxconn. The revenue included a $101.7 million achieve from the sale in addition to an $18.4 million reimbursement of working bills from Foxconn.
Lordstown and Foxconn introduced in November plans for the Taiwan-based firm to buy the ability and an settlement for the corporate to producer the struggling startup’s Endurance pickup. The deal was introduced as Lordstown was in want of money, delaying production of its pickup and engulfed in controversy after the resignation of its CEO and founder Steve Burns earlier within the yr.
Lordstown, which went public in October 2020, was amongst a bunch of electrical automobile startups to go public by particular objective acquisition corporations, or SPACs, because the starting of the last decade. The offers had been initially hailed by Wall Street and traders however controversies, product delays, lack of financing and govt shakeups have despatched shares of a lot of the corporations plummeting.
Lordstown was initially anticipated to be among the many first, if not the primary, firm to launch an electrical pickup truck, with preliminary estimates as early as 2020. However, General Motors, Rivian Automotive and Ford Motor have all beat the corporate to market following inner issues and delays with the Endurance.
Ford’s electrical F-150 is squarely positioned to compete towards the Endurance for the business pickup truck market. Ford’s electrical F-150 pickup begins at about $23,000 lower than the Endurance, plus, it carries a first-mover benefit and the backing of a well-funded firm.