Goldman Sachs Downgrades Lordstown Motors Stock
LORDSTOWN, Ohio – Goldman Sachs downgraded Lordstown Motors Corp.’s stock rating from “buy” to “neutral” Thursday, sending shares slightly lower for the startup electric vehicle manufacturer.
Lordstown Motors closed at $9.71 Thursday, down about a half percent from the previous day’s close. The stock had fallen as low as 5%.
Goldman Sachs cited concerns over market competition and the production timeline of the Endurance, Lordstown’s all-electric pickup truck scheduled for production in late September.
The investment bank also expressed caution because a race model of the Endurance completed just 40 miles of the 280-mile SCORE San Felipe 250 last Saturday.
Analysts at Goldman wrote that the performance “suggests to us that there could be more development work to do on the powertrain than we had expected. This factor, coupled with the global auto supply chain challenges that are making it difficult to obtain parts, could increase the probability that the company’s market entry will be delayed and/or could occur at a more measured pace than we expected.”
Goldman also lowered Lordstown Motors’ 12-month price target from $21 to $10.
Copyright 2021 The Business Journal, Youngstown, Ohio.