Lordstown Updates Production, Financials After Tough 2021 – Green Fleet

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Lordstown plans to start producing its all-electric commerical pickup truck in 3Q 2022 at an estimated cost of $63,500, according to its latest SEC 10k filing. - Photo: Lordstown Motors

Lordstown plans to start out producing its all-electric commerical pickup truck in 3Q 2022 at an estimated value of $63,500, in accordance with its newest SEC 10k submitting.

Picture: Lordstown Motors

Lordstown Motors Corp., a supplier of electrical gentle responsibility vehicles for the industrial fleet market, introduced Feb. 28 it expects industrial manufacturing and gross sales of the Endurance of about 500 items in 2022 rising to as many as 2,500 items in 2023, in accordance with a information launch.

Amid challenges securing components and different provide chain points, it plans industrial manufacturing and gross sales within the third quarter of 2022, about one year later than it had projected for September 2021.

Lordstown shares, traded on Nasdaq, closed down 20% on Feb. 28 to $2.57 per share. 12 months over yr its shares have fallen 87% from $17.59 per share. Web earnings is down 125% yr over yr as of 4Q 2021.

In its launch of fourth quarter and financial yr 2021 monetary outcomes, Lordstown reported it incurred $85 million in working bills and $30 million in capital expenditures. It additionally raised $182 million in new capital, together with $150 million from Foxconn in fairness and down funds underneath the asset buy settlement, and $30 million primarily from fairness issuances underneath its fairness buy settlement.

The producer executed the asset buy settlement with Foxconn as a part of its strategic shift to a much less capital-intensive enterprise mannequin centered on growing, engineering, testing and industrializing autos in partnership with Foxconn, with Foxconn manufacturing the Endurance within the Lordstown facility in Lordstown, Ohio.

Damaged down, the $182 million in capital raises consisted primarily of $100 million in down funds by Foxconn on the market of the Lordstown facility, $50 million from the sale of widespread inventory to Foxconn, and $30 million in different fairness issuances. An extra $50 million down cost from Foxconn was obtained on on Jan. 28. It ended 2021 with a money stability of $244 million.

For the total yr, Lordstown reported it expended $388 million in working money move and $286 million in investing, together with elevating $288 million from financing actions.

In keeping with its consolidated stability sheets reported in its 10k assertion, Lordstown closed out 2021 with whole belongings of $688,783,000, in comparison with $767,219,000 on the finish of 2020. Its internet loss was $410,368,000 as of Dec. 31, 2021, in comparison with a internet lack of $124,050,000 on the finish of 2020.

Lordstown confronted mounting troubles in 2021 amid an government shake-up and a disclosure in a submitting that it wanted additional funding to be able to produce vehicles in 2022.

“The fourth quarter marked a major strategic shift for Lordstown Motors,” stated Dan Ninivaggi, CEO of Lordstown, in a information launch. “We executed the asset buy settlement with Foxconn and have made substantial progress on the phrases of our contract manufacturing settlement, topic to assessment by the Committee on Overseas Funding within the US (CFIUS). I imagine the Foxconn partnership is a essential step in unlocking the total potential of the Lordstown facility and brings a number of advantages to LMC. Our ongoing discussions with Foxconn are centered on reaching a definitive settlement for the joint improvement of future autos off the MIH platform with an acceptable funding construction to allow us to lift the required capital for the success of our partnership.”

Adam Kroll, chief monetary officer of Lordstown, stated within the launch the corporate endured by way of “the macro headwinds, our strategic shift, and administration transitions.

“We exercised self-discipline in our spending exercise, made substantial progress in the direction of the launch of the Endurance, and invested in our individuals, processes and applied sciences. Nevertheless, we perceive that elevating further capital within the close to time period is essential to the profitable launch of the Endurance and the execution of our working plan.”

The 10k assertion signifies the corporate is establishing pricing for the Endurance upon launch, which it expects to be about $63,500 together with a typical possibility bundle, however excluding the obtainable U.S. federal tax credit score of $7,500 for the acquisition of other gas autos.

 

 

 

Initially posted on Charged Fleet



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