Earnings Results: Lordstown posts narrower loss, pushes pickup production to later in 2022
Shares of Lordstown Motors Corp. traded lower in the extended session Thursday after the electric-vehicle maker reported a narrower quarterly loss and said production of its Endurance electric pickup truck will begin in earnest a little later than it had planned.
said it lost $96 million, or 54 cents a share, in the third quarter, compared with a loss of $42 million, or 57 cents a share, in the year-ago period.
FactSet consensus called for a loss of 59 cents a share. Lordstown is a pre-revenue company.
See also: Lordstown stock rallies 21% after EV maker and Foxconn seal deal to sell Ohio plant, develop new vehicles
Commercial production and deliveries of the Endurance will begin in the third quarter of next year, with a “limited number” of vehicles for testing, validation, verification and regulatory approvals built this year and the first quarter of 2022, Lordstown said.
The company previously had targeted the commercial start of production and sales for the second quarter of 2022.
The company guided for cash balances between $150 million and $180 million as of Dec. 31, 2021, including a planned down payment of $100 million for its plant, which is being sold to Taiwan’s Foxconn
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Lordstown said it expects capital expenses between $330 million and $350 million this year, down from $375 million to $400 million.
The EV maker late Wednesday announced that it had sealed a deal with Foxconn, the Taiwanese contract electronics maker also known as Hon Hai Technology Group, to sell its Ohio plant for $230 million.
Foxconn has agreed to make the $100 million down payment on the factory by Nov. 18, with additional $50 million down payments on Feb. 1 and no later than April 15 and the balance is due at closing, the companies said.
“The third quarter marked a significant strategic shift for Lordstown Motors,” Chief Executive Dan Ninivaggi said in a statement accompanying the quarterly results.
The deal with Foxconn “will unlock the tremendous potential of the Lordstown automotive plant” and will enable Lordstown to reduce the costs of bringing the Endurance to market and to jointly develop vehicles, Ninivaggi said. “Working collaboratively with Foxconn, we expect to be able to bring future vehicles to market faster and more efficiently.”
Lordstown shares ended the regular trading day up 23%.