Lordstown Motors delays production of EV pickups due to supplier issues

The Lordstown Motors Corp. electric pickup. Endurance is on stage during a unveiling event in Lordstown, Ohio, USA, on Thursday 25 June 2020.

Matthew Hatcher | Bloomberg | Getty pictures

Commercial production and deliveries of Lordstown Motors’ first product, an all-electric pickup called Endurance, are being pushed back, the company said on Thursday.

The difficult EV start-up said that commercial production is now expected to start in the third quarter of next year compared to the second quarter, due to an ongoing global problem with car suppliers and supply chains. This is the last delay for the pickup, which was originally expected to start production about a year ago.

“This is a modest delay from previous expectations as component and material shortages, along with other supply chain challenges, remain a problem for Lordstown Motors just as they are for industry in general,”[ads1]; said Lordstown CEO Dan Ninivaggi in the company’s third quarter. publication of financial results.

The pre-income company’s reported loss of 54 cents per share for the third quarter was slightly less than the loss of 59 cents per share expected by analysts, according to estimates prepared by Refinitiv.

Shares of the Ohio-based automaker remain volatile. The stock is down nearly 80% from its 52-week high of $ 31.57. The stock fell 10% during the trading session on Thursday, after getting 24% for the day to close at 6.89 dollars per share.

The share’s development on Thursday was the best trading day on a percentage basis in about one year. It was driven by Lordstown’s plans, which were confirmed on Wednesday, to sell the huge facility in Ohio to Foxconn. The sale is part of a larger agreement where the iPhone manufacturer Foxconn will assemble electrical pickups for the cash-charged company.

The agreement was first announced in September. It will provide capital to Lordstown, while giving Foxconn a head start on producing electric cars. Foxconn also has an agreement with the start-up company Fisker to produce electric cars in the years to come.

“Our goal is to become a capital lighting, engineering, design and development company focused on producing more all-electric vehicle applications,” Ninivaggi told investors during a conversation Thursday. “At Foxconn, we get a great partner who has a vision of a future for all electric cars and the resources to build a global footprint for vehicle technology and manufacturing.”

Parts of the plant have not yet been completed for the production of Endurance, according to Ninivaggi.

Still, he said Lordstown began assembling pre-production Endurance models for testing and validation during the third quarter. It expects to continue building the trucks through at least the first quarter of next year.

Aside from his financial problems, Lordstown is under investigation by the Securities and Exchange Commission and the Department of Justice regarding the agreement to be disclosed as well as potentially false or misleading statements from former management, including former CEO and founder Steve Burns.

Burns and his CFO left the SPAC-backed company in June after an internal investigation found “questions about the accuracy of certain statements” surrounding Lordstown’s pre-orders, particularly how serious the orders were and who came with them.

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