Lordstown Motors Stock Slams The Brakes With Voluntary Recall: What's Going On?

Lordstown Motors Corp RIDE shares are trading lower Thursday morning after the company announced a production and delivery halt

What Happened: EV maker Lordstown said since its last production update in January, the company has experienced performance and quality issues with some of its Endurance components, forcing its hand to temporarily stop production and customer deliveries.

The company is working with suppliers to try to determine the underlying cause of the issues. Lordstown noted that potential solutions include part design modifications, retrofits and software updates.

In connection with the findings, the company filed paperwork with the National Highway Traffic Safety Administration (NHTSA) to voluntarily recall 19 of its EVs to address "a specific electrical connection issue that could result in a loss of propulsion while driving."

From Last Week: Tesla Stock Skids On Recall Notice For Full Self-Driving Collision Potential: What You Need To Know

"While our experienced team has made significant progress in addressing the underlying component and vehicle sub-system issues affecting the Endurance build schedule, we remain committed to doing the right thing by our customers and to resolve potential issues before resuming production and customer shipments," said Edward Hightower, president and CEO of Lordstown Motors.

Lordstown intends to provide a more detailed update on the status of these issues on its upcoming earnings call, which is set for March 6.

According to Benzinga Pro, the company is expected to report a quarterly loss of 27 cents per share on revenue of $1.29 million.

See Also: Why Lucid Stock Is Crashing Today

RIDE Price Action: Lordstown has a 52-week high of $3.79 and a 52-week low of 87 cents.

The stock was down 10.4% at $1.11 at the time of writing, according to Benzinga Pro.

Photo: Trump White House Archives from Flickr.

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