Lordstown Motors Electric Truck Production to Be Half of Forecasts

Startup posts wider-than-expected loss; CEO says the company needs 'additional capital to execute on our plans.'
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Lordstown Motors  (RIDE) - Get Report , the electric truck maker, posted a wider-than-expected first-quarter loss and said 2021 production of its Endurance truck will be half prior expectations.

Shares of the New York company were falling 8% to $8.90 in after-hours trading. Year to date, the company's stock has fallen nearly 52%.

Lordstown Motors reported a net loss of $125 million, or 72 cents a share, compared with a loss of $11.9 million, or 16 cents a share a year ago.

Analysts surveyed by FactSet were expecting the company to report a loss of 28 cents a share.

"We secured a number of critical parts and equipment in advance, so we are still in a position to ramp the Endurance, but we do need additional capital to execute on our plans," Chairman and CEO Steve Burns said in a statement. "We believe we have several opportunities to raise capital in various forms and have begun those discussions."

Burns said the company "encountered some challenges, including COVID-related and industry-wide related issues," such as significantly higher-than-expected expenditures for parts and equipment, expedited shipping costs, and expenses associated with third-party engineering resources.

The company expects capital expenditures of $250 million to $275 million and year-end liquidity of $50 million and $75 million in cash and cash equivalents.

Lordstown Motors was downgraded by Wolfe Research recently to underperform from peer perform and sliced its share-price target to $1 from $18.

In April, Lordstown Motors suffered a setback after the electric-truck maker's pickup truck, Endurance, failed to complete a race in Baja, Mexico.

Burns said the company was pleased with the vehicle's performance "despite challenges that arose in predicting energy usage in the Mexican desert."

TheStreet.com founder Jim Cramer said last week that he's not recommending the stock because the EV maker has burned investors in the past.

In March the company reported a wider loss, as expected, for the fourth quarter and disclosed an SEC probe arising from a short-seller's critical report.

Ford  (F) - Get Report recently previewed its own electric truck, the F-150 Lightning. On Friday CEO Jim Farley tweeted that the company had received than 44,500 reservations for F-150 in less than 48 hours.

The automaker had climbed near its highest levels on Monday after it officially unveiled a commercial version of the F-150 Lightning. Shares eventually slipped.