Lordstown Motors Posts Lower-Than-Expected Q3 Loss; Shares Fall 10%

Electric vehicle (EV) innovator Lordstown Motors Corp. (RIDE) has reported a net loss of $0.54 per share for the third quarter of 2021, narrower than the Street’s estimate of a loss of $0.59 per share.

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Meanwhile, shares of RIDE declined 10.3% in Thursday’s extended trading session after the commercial production and deliveries of the company’s full-size electric pickup truck, Endurance, got delayed once again.

The CEO of Lordstown Motors, Dan Ninivaggi, said, “Since the beginning of the fourth quarter, we have begun building the first of what we expect to be approximately 100 pre-production vehicles that we will use to pursue a variety of validation activities aimed at achieving full homologation.”

“This is a modest delay from earlier expectations as component and material shortages, along with other supply chain challenges, remain an issue for Lordstown Motors just as they are for the industry at large. We now expect that commercial production and deliveries of the Endurance will begin in the third quarter of 2022.”

Q3 Results

The company incurred capital expenditure of $79.9 million during the quarter. Also, as of September 30, 2021, Lordstown Motors had cash balance of $233.8 million. (See Lordstown Motors stock charts on TipRanks)

Research and development expenses of $56.9 million increased 89.8% year-over-year. Selling, general and administrative expenses more than doubled to $31.3 million.

2021 Outlook

Lordstown Motors expects to report cash balance between $150 million and $180 million at the end of the fourth quarter. Also, it anticipates capital expenditure in the range of $330 million to $350 million.

Selling, general and administrative expenses are anticipated to lie between $105 million and $120 million and research and development costs are expected in the range of $320 million to $340 million.

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Price Target

Based on 1 Buy, 3 Holds and 3 Sells, the stock has a Moderate Sell consensus rating. The average Lordstown Motors price target of $6.67 implies 3.2% downside potential from current levels.

Negative Investor Sentiments

TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Lordstown Motors, with 6% of investors on TipRanks decreasing exposure to RIDE stock over the past 30 days.