Lordstown Motors signals need for more capital to boost production, shares drop
2022.05.09 18:38
Lordstown’s logo is pictured on a smartphone in this illustration taken, December 4, 2021. REUTERS/Dado Ruvic/Illustration
(Reuters) – Electric vehicle startup Lordstown Motors Corp said on Monday it needed $150 million in addition to the proceeds from its sale of assets to Taiwanese contract manufacturer Foxconn to put its Endurance pickup truck into the hands of customers.
The company’s stock, which is down over 12%, is set for its worst day in over two months.
Supply chain woes and rising material costs are limiting the industry’s capability to produce sufficient electric vehicles to meet soaring demand.
In November last year, Lordstown Motors said it had entered an agreement with Foxconn for the sale of its Ohio facility for $230 million excluding certain assets such as the hub motor assembly and battery pack lines.
Lordstown Motors said it needed additional capital, apart from the proceeds from the deal with Foxconn, to scale up the production of the electric pickup truck, complete testing, purchase materials and vehicle components.
The company, which also reported first-quarter results, said it had a cash balance of $204 million, compared with $587 million a year earlier. Lordstown has received $200 million in down payments for its assets from Foxconn.
The EV maker said it had extended a deadline by four days to May 18 to make repayments to Foxconn if the deal didn’t close.
Lordstown’s net loss for the quarter ended March 31 narrowed to $89.6 million, or 46 cents per share, from a loss of $125.2 million, or 72 cents per share, a year earlier.
