Shares of the leader in electric light duty trucks focused on the commercial fleet market, Lordstown Motors Corp. (RIDE) gained 5.38% at $5.88 during after-hours trading on Wednesday. RIDE stock lost -4.29% to close at $5.58 in the last trading session. The price range for RIDE stock was between $5.43 and $5.89. RIDE stock traded 15.06 million shares, which was higher than its daily average of 10.46 million shares in the last 100 days. Within the last five days, RIDE stock has lost -5.74%, while over the past month it has lost -36.23%. Following the release of its quarterly results, RIDE stock is rising.
During the reported quarter, how has RIDE performed?
Lordstown Motors, founded in Ohio with the intention of transforming the Mahoning Valley into the epicenter of the electric vehicle industry, is an original equipment manufacturer of light duty fleet vehicles. RIDE’s 6.2 million square foot Lordstown Assembly Plant will build the Lordstown Endurance, a full-size pickup truck fitted with all-electric propulsion and designed for commercial fleet use.
Lordstown Motors today announced its second quarter 2021 financial results and provided an outlook for the business.
A summary of the RIDE Stock key business highlights:
- The RIDE reported a $9 million net loss for the second quarter of 2021, $121 million in capex and $366 million in cash at the end of June 2021.
- Late September will mark the beginning of limited vehicle production for the RIDE.
- With retooling of stamping, assembly, and paint shops completed in Lordstown, the RIDE plant is now ready for production.
- Battery line has been fully commissioned, and site commissioning has been completed for the electric hub motor line, which is currently being installed.
- Five strategic priorities have been introduced to expand the commercial strategy of the RIDE by strengthening leadership.
- RIDE secured a capital investment agreement for $400 million and is now conducting due diligence on multiple strategic partners who may provide capital infusions.
- RIDE is also pursuing external sources of capital.
The financial outlook and objectives for 2021:
As part of its first quarter 2021 earnings release, RIDE is updating its financial outlook for 2021. The RIDE has revised its guidance as follows:
- Endurance production in 2021 will be limited to align with the commercialization roadmap.
- Capital expenditures are expected to be around $375 to $400 million by RIDE, mostly due to payments for hard tool purchases.
- In terms of selling, general and administrative (SG&A) costs, the RIDE expects operating expenses of between $95 and $105 million and between $30 million and $320 million in research and development (R&D).
- Without taking into account any capital raise funds, RIDE believes it will have liquidity of between $225 and $275 million by the end of 3Q21.
What else has RIDE Stock accomplished in Q2?
A revolutionary electric pickup truck has been the primary objective of Lordstown Motors (RIDE) for over three quarters. As part of this, RIDE’s Lordstown facility was retooled in several critical areas and its beta build program was completed. Several independent third-party crash tests have been successfully completed on Ride’s beta builds. They meet the standards for FVMSS-compliant software and plan to earn a five-star crash rating. Lordstown Week was one of the highlights of the quarter.
