Lordstown Motors (NASDAQ: RIDE) reported its Q3 2021 Monetary Outcomes on Thursday and reported that it’s going to delay the Endurance all-electric pickup as soon as once more. Moreover, Lordstown Motors confirmed the sale of its Lordstown, Ohio manufacturing facility to Foxconn.
“The third quarter marked a major strategic shift for Lordstown Motors,” Lordstown CEO Dan Ninivaggi stated. “We introduced our Settlement in Precept (“AIP”) with Foxconn relating to the sale of our Lordstown, Ohio meeting plant and the negotiation of a contract manufacturing settlement. The definitive Asset Buy Settlement with Foxconn, implementing the AIP, was executed earlier this week.”
Lordstown has been fighting money move points for many of 2021. In June, the corporate introduced that it was going through main money move points that left its future unsure. There was “substantial doubt” that Lordstown would preserve its doorways open previous June 2022 after submitting a sizeable lack of $125 million in Q1 2021. Lordstown’s future “depends on its potential to finish the event of its electrical autos, get hold of regulatory approval, start commercial-scale manufacturing and launch the sale of such autos,” the corporate stated. It deliberate to start constructing Endurance pickups in September, however this was evidently delayed, in accordance with a observe to buyers from the Q3 Earnings Name.
“Because the starting of the fourth quarter, we have now begun constructing the primary of what we anticipate to be roughly 100 pre-production autos that we’ll use to pursue a wide range of validation actions aimed toward attaining full homologation. This can be a modest delay from earlier expectations as part and materials shortages, together with different provide chain challenges, stay a problem for Lordstown Motors simply as they’re for the business at giant. We now anticipate that business manufacturing and deliveries of the Endurance will start within the third quarter of 2022,” Lordstown stated.
Whereas it beforehand gave an anticipated closure date of June 2022 within the submitting from June 2021, the brand new expectation is that Lordstown will have the ability to construct Endurance pickups at its manufacturing facility someday in Q2 2022 and start deliveries in Q3 2022. The inflow of money that’s coming from the sale of its Ohio manufacturing facility to Foxconn, which it introduced in August, helps the corporate preserve its doorways open for an prolonged interval, which is able to routinely contribute to extra time to develop the Endurance pickup. Lordstown particulars the transaction together with the money balances on its monetary sheet:
“Money balances of between $150 million and $180 million as of December 31, 2021, inclusive of the anticipated down fee of $100 million to be made by Foxconn beneath the Asset Buy Settlement in November, and $15 million in issuances beneath the fairness buy settlement in October, however unique of some other potential financings.”
The corporate additionally introduced the acquisition of Edward T. Hightower as President and Shea Burns as Senior Vice President, Operations.
We’re thrilled to carry on Edward T. Hightower as President and Shea Burns as Senior Vice President, Operations.
Welcome to Lordstown.#RideWithLordstown
Learn the press launch: https://t.co/mnqvzinmag pic.twitter.com/9uG9qa7E0s
— Lordstown Motors (@LordstownMotors) November 12, 2021
Disclosure: Joey Klender shouldn’t be a Lordstown shareholder.
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