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Sep 30, 2021
Nu Ride Q3 2021 Earnings Report
Reported a net loss and focused on strategic shift through partnership with Foxconn.
Key Takeaways
Lordstown Motors reported a net loss of $95.8 million for Q3 2021. The company focused on a strategic shift by executing an asset purchase agreement with Foxconn, aiming to transfer the Lordstown plant and establish a contract manufacturing agreement. They also agreed to pursue a joint venture with Foxconn to design and develop vehicle programs.
Net loss of $95.8 million was reported.
Capex reached $79.9 million.
Cash balance was $233.8 million as of September 30, 2021.
An asset purchase agreement with Foxconn was executed.
Forward Guidance
Lordstown Motors provided an updated financial outlook for 2021, anticipating the start of Endurance commercial production and deliveries in Q3 2022. The company projects cash balances between $150 million and $180 million as of December 31, 2021, and capital expenditures between $330 million and $350 million for the full year.
Positive Outlook
- Endurance commercial production and deliveries beginning in the third quarter of 2022.
- Building a limited number of vehicles for testing, validation, verification, and regulatory approvals during the remainder of 2021 and the first quarter of 2022.
- Cash balances of between $150 million and $180 million as of December 31, 2021, inclusive of the anticipated down payment of $100 million to be made by Foxconn under the Asset Purchase Agreement in November, and $15 million in issuances under the equity purchase agreement in October, but exclusive of any other potential financings.
- Capital expenditures of between $330 million and $350 million for the full year 2021, down from $375 million to $400 million, largely as a result of the timing of purchases related to tooling and production readiness.
- SG&A expenses of between $105 million and $120 million and R&D costs of between $320 million and $340 million, for the full year 2021, in each case unchanged.
Challenges Ahead
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