Lordstown Motors Shares Suffer Punishing Week
LORDSTOWN, Ohio – Shares of Lordstown Motors Corp. hit their 52-week low on Friday, bottoming out at $3.84 before closing at $4.00 per unit, a 3.3% drop from the previous day’s close.
The electric vehicle manufacturer’s stock, which trades under the ticker symbol RIDE, slid precipitously throughout the week and lost more than 17% of its value over a five-day period. The stock has declined more than 80% year-to-date.
In November, the company announced that it would delay commercial production of its inaugural vehicle, the all-electric Endurance pickup, until the third quarter of 2022. A regulatory filing on Nov. 16 also showed that former CEO Steve Burns, who resigned in June, had sold off more than 3.2 million shares worth more than $18 million.
Lordstown Motors announced Nov. 10 that it had signed an asset purchase agreement with Taiwan-based Foxconn, which plans to buy the electric automaker’s plant – the former General Motors Lordstown complex — for $230 million. The deal is expected to close April 30.
Foxconn, a major electronics company known as a manufacturer of iPhones, has moved into the EV market. In October, the company unveiled three EVs through its joint venture with Taiwan-based Yulon Motor Group.
Earlier this year, Foxconn struck up a partnership with Fisker Inc., which intends to produce its Pear electric vehicle at the Lordstown plant.
Copyright 2022 The Business Journal, Youngstown, Ohio.