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How Lordstown Motors Plans To Disrupt The Electric Vehicle Sector

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How Lordstown Motors Plans To Disrupt The Electric Vehicle Sector

The red-hot electric vehicle industry has received its fair share of praise and skepticism. With popular names like Nikola (NASDAQ: NKLA), Workhorse Group (NASDAQ: WKHS) and Plug Power (NASDAQ: PLUG) in the headlines, this year has been an exciting one for alternative energy investors.

Lordstown Motors, which is partly owned by Workhorse, hopes to make a splash by producing an electric pickup to compete with household names. On Monday, the company said it will go public via a merger with a special purpose acquisition company

EV Truck Rollouts: Electric vehicles are slowly becoming the industry standard, and the next validation point is proving that electric utility vehicles such as pickups and semis can serve the industry just as well, if not better, than internal combustion options.

Notable pickups scheduled to hit the market in the near future include Tesla’s (NASDAQ: TSLA) Cybertruck, Ford’s (NYSE: F) electric F-150, Nikola’s Badger, Rivian’s R1T, GMC’s Hummer EV and Bollinger’s B2. 

About Lordstown's Endurance: Lordstown’s new pickup, the Endurance, is set to hit the market next year.

The company believes that its dedication to all-electric power and light-duty utility will set its product apart from electric options made by more traditional brands.

Featuring automated technology that tracks the performance of each of the Endurance’s four wheels, Lordstown wants to integrate an entry-level price point with power and versatility to obtain a significant share of the market.

Company History: Lordstown Motors was founded in 2019, and in November, General Motors (NYSE: GM) sold its Lordstown, Ohio assembly plant to the young startup, becoming its headquarters.

Dubbed “Voltage Valley,” the location will be filled with 4,000-5,000 dedicated workers to mass-produce the Endurance in time for its planned 2021 market entry, according to the company. 

Workforce From Workhorse: Steve Burns leads the young company and previously served as CEO of Workhorse. In a public statement on the company’s blog, Burns said the Lordstown “management team hails from the likes of Tesla, Workhorse, Karma, GM, Toyota, VW, and Formula 1 Racing”.

Risks For Lordstown: Lordstown Motors identifies as an original equipment manufacturer, which means that it plans on manufacturing and assembling the Endurance largely or entirely by itself.

Additionally, a heavily competitive industry means that Lordstown needs to prioritize speed without sacrificing safety and quality to make a statement in the electric pickup market.

With just one plant to manufacture its vehicles, time will tell whether this startup has what it takes to thrive.

Photo courtesy of Lordstown Motors. 

 

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