Lordstown Motors Reports Wider Loss, Discloses  SEC Probe

Lordstown shares were lower as it reported a loss, as expected and disclosed an SEC probe following a short-seller's scathing report.
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Lordstown Motors  (RIDE) - Get Report shares declined after the electric-truck maker reported a wider loss, as expected, for the fourth quarter and disclosed an SEC probe arising from a short-seller's critical report.

In its first report as a public company, the Lordstown Ohio, company posted a net loss of $38.2 million, or 23 cents a share, widened from $7.1 million, or 10 cents. Revenue was zero, as the company hasn’t made any vehicles yet. 

It held $630 million of cash at year-end 2020.

Lordstown shares recently stood at $14.50, off 3.9%. They closed the regular Wednesday trading session at $15.09, down 0.9%.

In a conference call with analysts after the release, the company said it is cooperating with a Securities and Exchange Commission probe following last week's highly critical report on the company by short-seller Hindenburg Research. 

Hindenburg said in a report Friday, “Lordstown is an electric-vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” 

On Monday, Lordstown issued a preliminary response to a the report, saying “The company is aware of the remarks made in the report and intends to respond as appropriate in due time.”

For 2021, Lordstown expects capital expenditures of $250 million to $275 million, operating expenses of $40 million to $45 million and research and development costs of $180 million to $190 million.

Lordstown expects to have at least $200 million in cash and cash equivalents at year-end.

“We are … so close to delivering our first beta vehicles, which we believe should solidify and spur customer demand and commitments,” Founder and Chief Executive Steve Burns said in a statement.

“Commercial fleet customers should begin to provide feedback on betas in 2Q21—around the time we unveil the first prototype of our second vehicle, a van, that leverages our Endurance skateboard.”

“Lordstown Motors remains on track for start of production of its Lordstown Endurance all-electric pickup truck in September 2021,” the company said.