Lordstown Motors delays Endurance EV pickup production due to supplier issues, shares fall

Finance

The Lordstown Motors Corp. Endurance electric pickup truck sits on stage during an unveiling event in Lordstown, Ohio, U.S., on Thursday, June 25, 2020.
Matthew Hatcher | Bloomberg | Getty Images

Commercial production and deliveries of Lordstown Motors‘ first product, an all-electric pickup called the Endurance, are once again being pushed back, the company said Thursday.

The embattled EV start-up said commercial production is now expected to start in the third quarter of next year compared to the second quarter, due to an ongoing global issue with auto supplier and supply chains.

“This is a modest delay from earlier expectations as component and material shortages, along with other supply chain challenges, remain an issue for Lordstown Motors just as they are for the industry at large,” Lordstown CEO Dan Ninivaggi said in the company’s third-quarter financial results release.

The pre-revenue company’s reported loss of 54 cents a share was slightly narrower than the loss of 59 cents per share anticipated by analysts, according to estimates compiled by Refinitiv.

Shares of Lordstown fell by 7% during afterhours trading Thursday, after gaining 24% for the day to close at $6.89 a share.

Shares of the Ohio-based automaker remain volatile. The stock is down nearly 80% from its 52-week high of $31.57.

The stock’s performance Thursday was its best trading day on a percentage basis in roughly a year. It was driven by Lordstown’s plans, which were confirmed Wednesday, to sell its massive Ohio plant to Foxconn. The sale is part of a larger deal where iPhone maker Foxconn will assemble electric pickups for the cash-strapped company.

The deal was initially announced in September. It will provide capital for Lordstown, while giving Foxconn a jump start to producing EVs. Foxconn also has a deal with start-up Fisker to produce EVs in the coming years.

Lordstown on Wednesday also announced an executive shakeup at the company. President Rich Schmidt, one of the last high-ranking employees under former Lordstown founder and CEO Steve Burns, stepped down.

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