Lordstown Motors Up on Report of 50,000 Electric-Truck Orders

Lordstown Motors, which went public through a SPAC merger last month, reported that it has received about 50,000 orders for its electric truck.
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Shares of Lordstown Motors  (RIDE) - Get Report jumped Monday after the electric-vehicle maker said it had received about 50,000 non-binding production reservations for its all-electric pickup truck. 

The reservations came from commercial fleets for its truck, with the average order size being about 500 vehicles per fleet. 

Deliveries of the Lordstown Endurance are expected to begin in September with full production ramping through 2022. 

The pickup retails for $52,500 and will be supported by a U.S. tax credit of up to $7,500. 

The company also unveiled plans to open a satellite research and development facility in Michigan and an open service center in Irvine, Calif., that will be the company's first service center outside Ohio. 

Lordstown Motors went public on the Nasdaq in late October via a combination with a special-purpose-acquisition-company, or SPAC. 

The company says that it expects to report earnings on a normal schedule, commencing with year-end results for 2020.

It was expected to receive about $675 million of gross proceeds from its initial public offering.

At the time, the company said it had 40,000 preorders for its flagship work pickup truck, which would account for $2 billion in revenue if every order was filled. 

Lordstown expects operational-earnings margins to at least reach break-even in 2022, its first full year of production, and surpass 10% by 2024. 

At last check Lordstown Motors shares were up 10% at $19.78. They've traded on Monday up as much as 13% at $20.23.