Lordstown Motors shares to build EV pickup are driven by initial demand and strong fares

Lordstown Motors Corp chief executive Steve Burns posed with a prototype of an endurance pickup truck for electric vehicle start-ups, which he began to build at the company’s plant in Ohio, US, on June 25, 2020, in the second half of June 20 Will give.

Lordstown Motors | Reuters

Electric vehicle start-up Lordstown Motors said initial reservations for its all-electric endurance pickup were strong and that it was planning to double work by the end, sending the company’s shares up to 13% by Monday morning.

The company said that it has obtained about 50,000 non-binding production reservations for the vehicle, which is favorable to commercial buyers rather than individual owners. According to a press release, the average order size of the reservation is around 500 vehicles.

Shares of Lordstown declined slightly, but still gained the most, rising nearly 8% to $ 19.30 a share in morning trading. The company has a market cap of $ 3.2 billion. It went public last month through a special purpose acquisition company or SPAC. Lordstown’s stock has been volatile since going public – $ 12.80 to $ 21.75 per share since Oct.26.

“We continue to make significant progress on all fronts, and we are excited to highlight these developments with the investment community and future customers today,” Lordstown CEO Steve Burns said in a statement.

Lordstown said endurance deliveries were expected to begin in September 2021, with full production expected to pick up by 2022. The company expects to produce 40 to 50 new or “beta,” prototype vehicles by early 2021. Trucks will be used. Accident, engineering and verification tests according to Lordstown.

The company said it was in the process of doubling its workforce by the end of this year, after which 1,500 people would be working by the end of 2021.

Ohio-based Lordstown joins a growing group of electric vehicle start-ups, going public through deals with SPAC, which have become a popular way to raise money on Wall Street as they have traditional traditional public offerings Is a more streamlined regulatory process than. SPAC shares generally get an initial pop following the announcement of the deal, but according to Goldman Sachs, there is a tendency to weaken the broader market in the long run.


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