Lordstown Motors plunges 5.0% on weak quarterly results

Lordstown Motors (RIDE.US) shares fell around 5.0% after the EV maker reported a wider than expected quarterly loss and delivered only 3 Endurance vehicles to customers before the end of 2022. Company still has over $220 million in cash.

• Loss per share: 45 cents, versus a loss of 42 cents per share in the fourth quarter of 2021.

• Revenue: around $194,000. Company had no revenue in the year-ago period.

• Q4 net loss rose to $102.3 million, compared with $81.2 million a year earlier. The results included an impairment charge of $36.5 million caused mainly by stock price decrease.

• Company started production in September and set a target to deliver 50 vehicles in 2022 and more in 2023 out of the planned first batch of 500 cars. However due to performance and technical issues  production was halted last month and no production outlook was included in the earnings release.

• Meanwhile Lordstown starts a new EV program in partnership with Taiwanese contract-manufacturer Foxconn, which acquired the company's factory and so far invested $52 million in the startup in a deal that could eventually be worth up to $170 million if all milestones are hit.

• “Our asset-light business model and collaboration with the Foxconn EV ecosystem, including MIH, will provide the opportunity for Lordstown Motors to create winning EVs that are tailored to the needs of customers that use them for various work applications, while gaining the cost benefits of scale,” said CEO Edward Hightower in a statement.

Lordstown Motors (RIDE.US) stock fell sharply on Monday and if current sentiment prevails, psychological support  at$1.00 may be at risk. Source: xStation5