What happened: A Lordstown Motors Endurance truck was presented on the White House lawn on Monday by President Donald Trump and representatives of Lordstown Motors.
Trump used the event to highlight jobs brought back to Lordstown, Ohio, following loss of former plant owner General Motors (NYSE: GM).
“We’ve been working on this for a very long time and very hard,” Trump said, looking at the Endurance truck.
“It’s a really unique thing because the four wheels are – hub motor, hub motor – it’s the only one that does that in the world. This has many advantages. ”
Why this is important: Lordstown Motors to Go Public and Trade on the Nasdaq under the Symbol “RIDE” Through Merger with SPAC DiamoondPeak Holdings Corp (NASDAQ: DPHC).
The merger deal is expected to raise $ 675 million in financing for Lordstown Motors, including $ 75 million from General Motors. Existing shareholders will own 50% of the company after the merger. The initial valuation is $ 1.6 billion.
Listed on the stock exchange Groupe Workhorse Inc (NASDAQ: WKHS) owns 10% of Lordstown Motors under an earlier deal. Workhorse will also benefit from the production of the Endurance truck, as it will earn a royalty on sales of the vehicle.
At Monday’s event, Steve Burns, CEO of Lordstown Motors, said the company hopes to manufacture 100,000 or more trucks each year at the plant. Lordstown plans to manufacture several models, he said.
The Endurance pickup is expected to cost $ 52,500 and up. The truck has a range of 250 miles on a single charge and comes with a towing capacity of 7,500 pounds.
The company said it had more than 40,000 reservations for the Endurance truck. This would represent $ 2.1 billion in sales for Lordtown Motors.
The company had $ 1.4 billion in preorders at the time of its merger announcement.
And after: The Endurance electric van targets the commercial fleet market. The truck is expected to start production in 2021.
The merger between DiamondPeak and Lordstown Motors is expected to close in the fourth quarter.
WKHS, DPHC Price Action: Workhorse shares were trading 14.23% higher at $ 28.14 at the time of publication on Monday.
The stock is up over 700% in 2020.
Shares of DiamondPeak Holdings were trading 12.39% higher to $ 26.85. The stock is up 140% in 2020.
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