Lordstown Motors to Produce 500 Endurance Trucks This Year
LORDSTOWN, Ohio – After several delays, Lordstown Motors Corp. reported Monday that the company projects it will produce 500 all-electric Endurance pickups this year and 2,500 units in 2023.
Limited commercial production for the Endurance is set to begin during the third quarter of 2022, the company reaffirmed in a financial filing detailing its full-year and fourth quarter earnings for 2021.
“The fourth quarter marked a significant strategic shift for Lordstown Motors,” said Dan Ninivaggi, CEO. “We executed the asset purchase agreement with Foxconn and have made substantial progress on the terms of our contract manufacturing agreement, subject to review by the Committee on Foreign Investment in the US. I believe the Foxconn partnership is a critical step in unlocking the full potential of the Lordstown facility and brings multiple benefits to LMC. Our ongoing discussions with Foxconn are focused on reaching a definitive agreement for the joint development of future vehicles off the MIH platform with an appropriate funding structure to enable us to raise the necessary capital for the success of our partnership.”
In October, Lordstown Motors announced it had reached an agreement with Taiwanese tech giant Foxconn to purchase Lordstown’s plant for $230 million and $50 million in equity investments. The deal is expected to close in April.
But no deal has been finalized yet, executives said on a conference call this morning discussing the financial results.
“Our organization’s top priority remains bringing the Lordstown Endurance full size all-electric pickup to market as quickly and efficiently as possible,” said Edward Hightower, president of Lordstown. “In the fourth quarter and into 2022, we continued to build and test pre-production vehicles that we are using to complete a variety of validation activities needed to achieve full homologation. Despite ongoing challenges securing parts and other supply chain issues, we continue to target commercial production and sales in the third quarter of 2022. With fewer moving parts than more conventional propulsion systems, we also believe the Endurance will have advantages in overall maintenance costs.”
In the fourth quarter, Lordstown Motors incurred $85 million in operating expenses and $30 million in capital expenditures. The company also raised $182 million in new capital, including $150 million from Foxconn in equity and down payments under the asset purchase agreement, and $30 million primarily from equity issuances under our equity purchase agreement.
“I am truly pleased by how our team navigated through 2021 given the macro headwinds, our strategic shift, and management transitions,” said Adam Kroll, chief financial officer of Lordstown. “We exercised discipline in our spending activity, made substantial progress towards the launch of the Endurance, and invested in our people, processes and technologies. However, we understand that raising additional capital in the near term is critical to the successful launch of the Endurance and the execution of our operating plan.”
For the full year, Lordstown Motors expended $388 million in operating cash flow and $286 million in investing, along with raising $288 million from financing activities.
The capital raises consisted of the $150 million from Foxconn, $82 million from the exercise of warrants and almost $56 million from the equity purchase agreement and employee option exercises.
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