Lordstown Motors Corp RIDE reported financial results Thursday morning. The electric vehicle startup reaffirmed its third-quarter target for start of production and booked a surprise profit on the back of asset sales to Foxconn.
What Happened: Lordstown Motors reported a second-quarter adjusted earnings loss of 19 cents per share, which beat the estimate for a loss of 45 cents per share.
The EV company said it generated an operating profit of $61.3 million, which included $120.1 million from the sale of its Lordstown facility. Lordstown said it gained $101.7 million on the sale and $18.4 million in operating expense reimbursement.
"Our immediate focus moving forward will be on completing the successful launch of the Endurance; identifying partners, including other OEMs, to jointly scale the Endurance; defining the first vehicle program under our Foxconn joint venture; securing significant customer support for that program; and earning the support from our investors required to raise the additional capital necessary to execute our business plan," said Daniel Ninivaggi, executive chairman of Lordstown Motors.
What's Ahead: Lordstown ended the quarter with $236 million in cash. Although the company said it will not need to raise as much capital in 2022 than it previously forecasted, the company's success and ability to execute its plan "remains dependent upon our ability to raise additional capital," said Adam Kroll, CFO of Lordstown.
Lordstown said it will need to raise between $50 million and $75 million in 2022, which is down from the company's previous forecast of $150 million.
The EV startup said Endurance production is slated to start in the third quarter, with commercial deliveries expected to follow in the fourth quarter. Lordstown also expects to announce its first vehicle program from its joint venture with Foxconn in the fourth quarter.
RIDE Price Action: Lordstown has a 52-week high of $8.93 and a 52-week low of $1.49.
The stock was up 750% at $3.15 at press time Thursday, according to data from Benzinga Pro.
Photo: T. Schneider via Shutterstock
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