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 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 Motors Corp., a provider of electric light-duty trucks for the commercial fleet market, announced on Feb. 28 it expects commercial production and sales of the Endurance of about 500 units in 2022 to grow to as many as 2,500 units in 2023, according to a news release.

Amid challenges securing parts and other supply chain issues, it plans commercial production and sales in 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. Its shares have fallen 87% from $17.59 per share year over year. Net income is down 125% year over year as of 4Q 2021.

In its release of the fourth quarter and fiscal year 2021 financial results, Lordstown reported it incurred $85 million in operating expenses and $30 million in capital expenditures. It also raised $182 million in new capital, including $150 million from Foxconn in equity and down payments under the asset purchase agreement, and $30 million primarily from equity issuances under its equity purchase agreement.

The manufacturer executed the asset purchase agreement with Foxconn as part of its strategic shift to a less capital-intensive business model focused on developing, engineering, testing and industrializing vehicles in partnership with Foxconn, with Foxconn manufacturing the Endurance in the Lordstown facility in Lordstown, Ohio.

Broken down, the $182 million in capital raises consisted primarily of $100 million in down payments by Foxconn for the sale of the Lordstown facility, $50 million from the sale of common stock to Foxconn, and $30 million in other equity issuances. An additional $50 million down payment from Foxconn was received on Jan. 28. It ended in 2021 with a cash balance of $244 million.

For the full year, Lordstown reported it expended $388 million in operating cash flow and $286 million in investments, along with raising $288 million from financing activities.

According to its consolidated balance sheets reported in its 10k statement, Lordstown closed out 2021 with total assets of $688,783,000, compared to $767,219,000 at the end of 2020. Its net loss was $410,368,000 as of Dec. 31, 2021, compared to a net loss of $124,050,000 at the end of 2020.

Lordstown faced mounting troubles in 2021 amid an executive shake-up and a disclosure in a filing that it needed additional funding to be able to produce vehicles in 2022.

“The fourth quarter marked a significant strategic shift for Lordstown Motors,” said Dan Ninivaggi, CEO of Lordstown, in a news release. “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.”

Adam Kroll, chief financial officer of Lordstown, said in the release the company endured through "the macro headwinds, our strategic shift, and management transitions.

“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.”

The 10k statement indicates the company is establishing pricing for the Endurance upon launch, which it expects to be about $63,500 including a standard option package, but excluding the available U.S. federal tax credit of $7,500 for the purchase of alternative-fuel vehicles.

Originally posted on Charged Fleet

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