Lordstown Motors plans limited production and deliveries of electric pickup trucks in 2022

Embattled electrical truck startup Lordstown Motors on Thursday reaffirmed its intention to start business manufacturing of its first automobile this quarter and roll out the primary deliveries to clients by the top of the yr.

Lordstown CEO Edward Hightower mentioned manufacturing of the Endurance pickup can be gradual and largely depending on the supply of capital. He mentioned the corporate solely plans to supply round 500 autos by way of early 2023, an especially gradual manufacturing ramp-up by trade requirements.

Chief Monetary Officer Adam Kroll mentioned Lordstown might want to elevate “considerably extra capital” to supply the primary 500 Endurance electrical pickups, though the corporate expects it should want much less cash than beforehand thought.

Lordstown inventory jumped 27% in Thursday morning buying and selling to $3.73 per share. The inventory is down about 15% this yr and 58% from its 52-week excessive at $8.93 per share. The corporate’s market capitalization is roughly $740 million.

The corporate mentioned it might want to elevate between $50 million and $75 million this yr, down from earlier expectations of $150 million. Lordstown will want further capital in 2023, Kroll mentioned.

Lordstown, alongside its second quarter outcomes, mentioned its money steadiness of $236 million on the finish of the primary half was above inner expectations and prolonged the cash-strapped firm’s runway – however was not not sufficient to finance the manufacturing.

The corporate reported its first quarter working revenue of $61.3 million for the interval ended June 30, regardless of no automobile deliveries, on positive factors from the sale of its Ohio plant in Foxconn contract producer. The revenue included a $101.7 million acquire on the sale in addition to an $18.4 million reimbursement of working bills from Foxconn.

Lordstown and Foxconn introduced plans in November for the Taiwan-based firm to purchase the power and a deal for the corporate to fabricate the struggling startup’s Endurance pickup. The deal was introduced as Lordstown wanted the cash, delaying manufacturing of its pickup and engulfed in controversy after its CEO and founder Steve Burns resigned earlier within the yr.

Lordstown, which went public in October 2020, was amongst a bunch of electrical automobile startups to go public by way of particular function acquisition corporations, or SPACs, because the flip of the last decade. The offers had been initially welcomed by Wall Avenue and traders, however controversies, product delays, lack of funding and administration shakeups despatched shares of most 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. Nevertheless, Basic Motors, Rivian Automotive and Ford Motor have all overwhelmed the corporate to market following inner testing . issues and delays with Endurance.

Ford’s electrical F-150 is completely positioned to compete with the Endurance within the business pickup market. Ford’s F-150 electrical pickup prices about $23,000 lower than the Endurance, plus it provides first-mover benefit and the backing of a well-funded firm.