Lordstown Motors Corp RIDE shares are trading higher Tuesday after the company reported third-quarter financial results and announced an expanded partnership with Foxconn.
Lordstown reported a third-quarter net loss of 73 cents per share, which missed average analyst estimates for a loss of 31 cents per share, according to Benzinga Pro. The company ended the quarter with $204 million in cash and short-term investments.
Lordstown reaffirmed that it plans to start delivering the Endurance vehicle in the fourth quarter, subject to full homologation and required certification, which is expected later in the quarter.
"Production is expected to increase towards the end of the month as the remaining supplier part pedigree and availability issues are resolved. Approximately 30 commercial units of the first batch are estimated to be built by the end of 2022, with the remainder built in the first half of 2023," the company said.
Lordstown also reached an agreement with Foxconn in which Foxconn will make additional equity investments in Lordstown via $70 million of common stock and up to $100 million of a newly created convertible preferred stock.
Lordstown will use the proceeds from the sale of the preferred stock to fund development and design activities for a new electric vehicle program in collaboration with Foxconn.
RIDE Price Acton: Lordstown has a 52-week high of $7.19 and a 52-week low of $1.48.
The stock was up 13.5% at $2.11 at time of publication.
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