Shares of electric-vehicle maker Lordstown Motors RIDE raced out of the gate, then pared the gains in their public debut on the Nasdaq.
The stock rose as high as $21.75 in its debut, CNBC reported. At last check Lordstown was trading up 8.7% to $19.80. The stock opened at $19.32 per share.
The Lordstown, Ohio, company went public through a merger with a SPAC, or special-purpose-acquisition company. Lordstown closed the merger with DiamondPeak Holdings last week.
It was expected to receive about $675 million of gross proceeds from its initial public offering.
The company says it has 40,000 preorders for its flagship work pickup truck, which would account for $2 billion in revenue if every order is filled.
The pickup retails for $52,500 and will be supported by a U.S. tax credit of up to $7,500.
The truck is scheduled to begin production in 2021 at General Motors' former Lordstown assembly plant in northeastern Ohio. The company, launched in November 2019, acquired a plant that GM had closed in March 2019.
Lordstown expects operational-earnings margins to at least reach break-even in 2022, its first full year of production, and surpass 10% by 2024.
"This is a factory town and the factory shut down. We're not just bringing jobs, we're bringing new jobs. This is the future. Electric is the future," Chief Executive Steve Burns said, according to TechXplore.