It’s a bad day to be Lordstown Motors (NASDAQ:RIDE) right now. Bad news hit in waves and sent investors packing, taking their cash with them. Sufficiently so, in fact, that Lordstown was down over 12% at the time of writing.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The biggest problem for the electric vehicle maker was a complete shutdown of production. That would normally be the kiss of death for a lot of companies, but Lordstown is already looking into ways to get back in the fray. In fact, the product issues seem to focus on its Endurance line of vehicles. Lordstown already filed notice with the National Highway Traffic Safety Administration to start up a voluntary recall on the Endurance.
Interestingly, the recall doesn’t go very far. Reports suggest that Lordstown Motors has only produced 31 Endurance models for sale so far. Thus, a recall may not exactly take a lot to accomplish. Yet, the fact that there aren’t that many of these produced doesn’t mean the problem isn’t there. Lordstown is already looking into fixes; as of right now, the stoppage relates to a combination of “performance and quality issues” with certain parts. As a result, the vehicles may suddenly lose propulsion while driving thanks to a problem with the electrical connection.
Lordstown insiders aren’t exactly enthusiastic about the company either, based on insider trading figures. Currently, insider confidence levels are negative, as they sold $4.3 million worth of shares in the last three months.
