Shares of Lordstown Motos Corp. (NASDAQ: RIDE) fell in morning trading on Monday after the EV automaker’s losses widened in the fourth quarter to $0.45 per share from $0.42 per share in the same period last year and exceeded analysts’ estimates of a loss of $0.32 per share.
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The company had a rocky start to the commercial sales of its battery electric vehicle (BEV) Endurance in Q4 as it began to experience production hiccups and quality issues resulting in the company pausing production temporarily. At the end of Q4, the company recorded sales of $194,000 with the selling of three Endurance vehicles, falling short of consensus expectations of $1.06 million.
Regarding more sales of its Endurance vehicles, the company stated, “.. through February 2023, approximately 40 Endurance vehicles have been completed or are in process and we have sold a total of six vehicles, of our planned initial batch of up to 500 units. We now have line of sight to the resolution of the issues that resulted in the production pause and voluntary recalls, and in the upcoming weeks expect to announce when we will resume production and deliveries.”
Looking forward, management now expects cash and short-term investments in the range of $150 to $170 million at the end of Q1 in FY23 “excluding any additional Foxconn funding, other equity sales or contingent liabilities.”
Foxconn had increased its investment in RIDE by $170 million in the fourth quarter.
RIDE stock has tanked by around 49.1% in the past year.
