Gains de Lordstown
The company continues to limit vehicle production from the end of September, supporting the forecast given in May. Lordstown also plans to complete vehicle validation and regulatory approvals in December and January.
“This will be followed by deployments to selected first customers in the first quarter before commercial deliveries at the start of the second quarter, with the ramp increasing in the second half of next year,” said Executive Chairman Angela Strand.
Management also said its plant is ready for production and retooling of the stamping, assembly, bodywork and paint shops is complete.
In addition, a battery line is fully commissioned, the first hub electric motor line site to be commissioned and being installed.
“We are also evaluating potential strategic partners, with many industry participants recognizing the tremendous benefits available to them by using our conveniently located 6.2 million square foot manufacturing facility and 650 acre campus,” said Strand said.
Losses per share widened to 61 cents from 11 cents a year ago. Analysts polled by FactSet had expected a loss of 49 cents a share. The income was nil.
In a move that casts doubt on Lordstown’s future, the top investor Workaholic group (WKHS) said on August 10 it had sold most of its stake in Lordstown. Workhorse has sold 11.9 million shares since July 1, reducing its 10% stake in the Ohio-based company by two-thirds.
However, in a filing with the SEC on July 26, Lordstown said it had struck a deal in which hedge fund YA II would buy up to $ 400 million in shares of the company.
On Wednesday, the company raised its forecast for capital spending for 2021 to $ 375 million to $ 400 million, largely related to advance payments for hard tool purchases, from an earlier forecast of $ 250 million to $ 275 million. It also forecasts liquidity at the end of the third quarter of $ 225-275 million, not including funds from a capital increase against a liquidity forecast of $ 50-75 million at the end of the year. last year.
After the latest earnings call, Lordstown said it was delaying the start of production of its Endurance electric pickup until the end of September. Management also said production will be limited and at best 50% of its previous expectations.
Since then, many senior executives have left the struggling company. And Lordstown on June 8 told investors it didn’t have enough cash to start commercial production and sales of Endurance and signaled it could shut down if it didn’t get more. funding. However, a week later, the company said it had enough money to start production and that it planned to build between 15,000 and 20,000 trucks until May 2022.
In May, short seller Hindenburg Research claimed Lordstown misled investors with fake order numbers, among other things, to raise capital for its Endurance electric pickup. The Hindenburg report also said the pickup was years away from production.
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Earnings on arrival
Analysts expect UK-US light commercial electric vehicle maker Arrival to post a loss of 5 cents a share on zero revenue.
Arrival says it has four EVs in development: a bus, a van, a large van, and a small vehicle platform. The start of production of the bus is scheduled for the last quarter of 2021.
Arrival says its electric vehicles are the first electric vehicles to cost the same as gasoline and diesel equivalents. The company claims to have created an electric vehicle platform that can be scaled to create many variations across multiple vehicle classes.
The company announced in May its partnership with Uber (UBER) to develop the arrival car, which is scheduled for production in the third quarter of 2023.
Lordstown, Arrival Stock
RIDE stock was up 3.2% late in the day after closing 4.3% lower at 5.58 on the stock market today. Stocks are well below their 52-week high, 31.80, reached in September 2020. RIDE stock is trading well below its 50-day line, according to MarketSmith chart analysis.
Lordstown’s line of relative strength is declining and at all-time lows.
Meanwhile, ARVL stock fell 6.2% to 12.80. ARVL stock has lost two-thirds of its value since hitting a midday high of 37.18 on December 7, 2020. Arrival’s relative strength line is improving after hitting historic lows .
WKHS fell 4.5% and UBER fell 2.5%.
Follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
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