Lordstown expects to sell 500 Endurance electric trucks even as costs surge

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Electric car startup Lordstown Motors mentioned on Monday it plans to sell its first 500 Endurance electric pickup trucks this year even as bills associated to the launch surged within the fourth quarter, sending its shares down 16%.

The company, when it went public beneath the earlier administration, had beforehand forecast gross sales of about 32,000 automobiles within the first full year of manufacturing.

Goldman Sachs analyst Mark Delaney mentioned the goal of 500 vehicles was “well below” Street estimates and had based mostly his income estimates based mostly on 2,250 deliveries in 2022 and 10,000 models in 2023.

The Ohio-based startup had delayed the launch of the brand new electric truck by three months due to supply-chain points and has by no means offered a car and didn’t document any income within the fourth quarter. 

Legacy automakers have made a drastic shift to deal with electric vehicles as demand will increase, whereas startup corporations are gearing for brand new launches this year, making competitors extra intense as they fight to tackle business chief Tesla.

Lordstown is spending closely to launch its first truck that may rival with Ford and General Motor’s new electric trucks, additionally anticipated to hit the market this year. It expects to enhance manufacturing five-fold by 2023.

The company goals to rival auto giants like Ford Motor.
Bloomberg through Getty Images

The company’s Chief Executive Officer Dan Ninivaggi — who changed Chief Executive Steve Burns after his resignation in 2021 — mentioned the price of supplies and parts at launch can be considerably increased than the car’s anticipated promoting worth however would enhance over time.

For the fourth quarter, internet loss widened to $81.2 million as it incurred a complete of $115 million in bills, some associated to the business launch of Endurance.

Lordstown can also be in discussions with Taiwanese know-how company Foxconn Technology to develop automobiles and has thought of options to elevate capital for the partnership.