Lordstown Motors Q4 loss widens as higher costs, delivery delays weigh

The Q4 net loss stood at $102.3 million, compared with $81.2 million a year earlier. The results included an impairment charge of $36.5 million.

March 06, 2023 07:59 AM

Reuters

The company began making its Endurance electric pickup in September after Taiwanese contract manufacturer Foxconn acquired Lordstown's Ohio factory and entered a deal to make their vehicle.

Lordstown Motors Corp. on Monday posted a bigger loss for the fourth quarter, as the electric-vehicle maker struggled with production costs and missed its delivery target for the Endurance pickup truck in the period.

EV companies such as Lordstown that went public in the past few years have been battling surging costs and challenges in securing supply of parts to make enough vehicles to meet the sector's burgeoning demand.

The company said Monday that its net loss widened to $102.3 million from $81.2 million a year earlier. The results included an impairment charge of $36.5 million caused mainly by a decrease in its stock price.

At the start of commercial production in September, the company had set a target to deliver 50 vehicles in 2022 and more in 2023 out of the planned first batch of 500 units.

However, it suspended production last month due to performance and quality issues with some components and reported sales of only six vehicles. The supply chain constraints, especially in motor components, are also expected to weigh on production in the current quarter.

On Monday, Lordstown posted sales of three vehicles and said it incurred $30 million in cost of sales. But, it did not provide a production or delivery forecast for the electric pickup truck during a conference call with analysts.

"We will continue to execute a capital constrained business plan," CFO Adam Kroll said, adding that Lordstown will need to raise "significantly more" capital to cover costs related to developing its new vehicle.

Lordstown Motors began making its Endurance electric pickup in September after Taiwanese contract manufacturer Foxconn acquired Lordstown's Ohio factory and entered a deal to make their vehicle.

The company had a cash balance of $121.4 million, at the end of the fourth quarter, down from $154.2 million in the preceding quarter.

Revenue during the quarter was $194,000, compared with analysts' estimate of $1.29 million, according to IBES data from Refinitiv.

Lordstown also reiterated doubt in its ability to continue as a going concern.