Lordstown Motors Announces Fourth Quarter and Fiscal Year 2021 Financials
Feb 28, 2022 By MarketDepth
Lordstown Motors Corp. (NASDAQ: RIDE) has provided financial results for the fourth quarter and fiscal year 2021. For the fourth quarter the company raised USD 182 Million in capital, from USD 100 Million in down payments by Foxconn for the sale of the Lordstown facility. The company has reaffirmed its third-quarter 2022 target for commercial production and sales of Endurance. The expected commercial production and sales of the Endurance are approximately 500 units in 2022, potentially reaching 2,500 units in 2023.
“The fourth quarter marked a significant strategic shift for Lordstown Motors. We executed the asset purchase agreement with Foxconn and have made substantial progress on the terms of our contract manufacturing agreement, subject to review by the Committee on Foreign Investment in the US (CFIUS). I believe the Foxconn partnership is a critical step in unlocking the full potential of the Lordstown facility and brings multiple benefits to LMC. Our ongoing discussions with Foxconn are focused on reaching a definitive agreement for the joint development of future vehicles off the MIH platform with an appropriate funding structure to enable us to raise the necessary capital for the success of our partnership.”Dan Ninivaggi, Chief Executive Officer of Lordstown
“Our organization’s top priority remains to bring the Lordstown Endurance full-size all-electric pickup to market as quickly and efficiently as possible,” said Edward Hightower, President of Lordstown. “In the fourth quarter and into 2022, we continued to build and test pre-production vehicles that we are using to complete a variety of validation activities needed to achieve full homologation. Despite ongoing challenges securing parts and other supply chain issues, we continue to target commercial production and sales in the third quarter of 2022. We have a unique vehicle that will offer a superior combination of handling, traction control, torque and turning radius that we are confident will be appreciated by our customers. With fewer moving parts than more conventional propulsion systems, we also believe the Endurance will have advantages in overall maintenance costs.” “I am truly pleased by how our team navigated through 2021 given the macro headwinds, our strategic shift, and management transitions,” said Adam Kroll, Chief Financial Officer of Lordstown. “We exercised discipline in our spending activity, made substantial progress towards the launch of the Endurance, and invested in our people, processes and technologies. However, we understand that raising additional capital in the near term is critical to the successful launch of the Endurance and the execution of our operating plan.”