Lordstown Motors delays EV pickup production due to supplier issues
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Lordstown Motors Corp. During an unveiling in Lordstown (Ohio), U.S.A on Thursday June 25, 2020, Endurance electric pickup truck is seen on the stage.
Getty Images| Bloomberg | Getty Images
Delivery and production of commercial goods Lordstown MotorsCompany announced that the production of the Endurance’s first product, an electric pickup, is being delayed once more.
The struggling EV company said it expects commercial production to begin in the third trimester of next year. It did so because there is a global supply chain issue and ongoing issues with suppliers.
Lordstown Motors CEO Dan Ninivaggi stated that “This is only a slight delay from our earlier expectations because component and material shortages along with other supply chains challenges remain an issue for Lordstown Motors as they are in the entire industry.” third-quarter financial results release.
Refinitiv’s estimates showed that the reported loss for pre-revenue companies of 54 cents per shared was slightly lower than what analysts had expected to lose of 59 cents.
After gaining 24% on the previous day, Lordstown shares fell by 7.7% in afterhours trading. They closed at $6.89 per share.
The shares of Ohio’s automaker are still volatile. It is now down almost 80% from its 52 week high of $31.57.
The stock had its highest percentage trading day in about a year on Thursday. Lordstown’s plans were the driving force behind it. confirmed WednesdayFoxconn will buy the Ohio-based plant. Foxconn, the iPhone maker, will also be assembling electric pickups in a bigger deal.
Initial agreement was reached. announced in September.The deal will also provide capital to Lordstown and give Foxconn a jumpstart in producing EVs. Foxconn is also negotiating a partnership with Fisker in order to develop EVs over the next few years.
Lordstown also announced Wednesday that the company would be undergoing a major executive shakeup. Rich Schmidt, President, was the former CEO of Lordstown and founder Steve Burns. He resigned.
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