Lordstown Motors says it still has $220 million in cash as it grapples with production issues and an EV pivot

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  • On Monday, Lordstown Motors said it still had more than $220 million in cash.
  • It delivered just six Endurance EV pickups to customers before halting production last month.
  • Lordstown is working with contract manufacturer Foxconn on a new electric vehicle program.

Lordstown Motors said on Monday that it still had more than $220 million in cash as of the end of 2022, despite ongoing problems that halted production of its Endurance electric pickup truck after just six had been delivered.

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Shares closed up almost 9% on Monday after the report.

Lordstown began deliveries of its first electric vehicle, the Endurance pickup truck, in November. By the end of February, the company had built about 40 trucks and handed over six to customers. But on February 23, the company said it was halting production of the Endurance to address performance and quality issues, and that it was recalling 19 trucks to repair a faulty electrical connection that could suddenly stop engines while driving.

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As of December 31, Lordstown had $221.7 million in cash and short-term investments.

Here are the key figures for Lordstown’s fourth quarter. income statement:

  • Loss per share: 45 cents vs. a loss of 42 cents per share in the fourth quarter of 2021.
  • Income: about $194,000. Lordstown had no revenue last year.
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The company’s net loss increased to $102.3 million from $81.2 million a year earlier. Lordstown delivered three Endurance pickups to customers in the fourth quarter.

The Ohio-based startup is starting a pivot to a new electric vehicle program in partnership with Taiwanese contract manufacturer Foxconn, which bought the Lordstown plant and invested in the startup last year in a deal that could eventually be worth up to $170 million if all milestones are completed. strike.

Lordstown said Foxconn has invested $52 million so far, of which $30 million is for a new EV platform that will include components and engineering developed by the Mobility in Harmony (MIH) consortium, Foxconn’s open architecture effort for electric vehicles. electric vehicles.

Lordstown said the next platform and vehicle program is “key” to its long-term strategy.

“Our asset-driven business model and collaboration with the Foxconn EV ecosystem, including MIH, will give Lordstown Motors the ability to create winning EVs tailored to the needs of customers who use them for a variety of work applications while generating cost savings. scale,” said CEO Edward Hightower.

Credit: www.cnbc.com /

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