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Sep 30, 2022
Nu Ride Q3 2022 Earnings Report
Lordstown Motors' third quarter results were released, highlighting the start of commercial production of Endurance vehicles and a partnership with Foxconn, but also included an operating loss due to asset impairment and litigation accruals.
Key Takeaways
Lordstown Motors reported a Q3 2022 operating loss of $154.8 million, which includes significant non-cash charges. The company started commercial production of Endurance vehicles at a slow rate and is collaborating with Foxconn. They ended the quarter with $204 million in cash and short-term investments.
Started commercial production of Endurance vehicles at Foxconn Ohio assembly plant, though at a very slow rate.
Operating loss of $154.8 million includes significant non-cash charges; adjusted operating loss was $33.8 million.
Ended the quarter with cash and short-term investments of $204 million, exceeding internal expectations.
Foxconn agreed to make an additional investment in Lordstown Motors of up to $170 million, subject to certain terms and conditions.
Forward Guidance
Lordstown Motors is reaffirming Q4 start of deliveries of Endurance, awaiting EPA and CARB approval, and targeting an initial production batch of up to 500 units. The company is also working on its next vehicle with Foxconn and anticipates year-end cash and short-term investments between $150 to $165 million, inclusive of Foxconn's initial investment.
Positive Outlook
- Reaffirming Q4 start of deliveries of Endurance, subject to full homologation and required certification.
- Awaiting approval from EPA and CARB; all FMVSS crash testing has been successfully completed.
- Continue to target initial production batch of up to 500 units.
- Pre-development work on next vehicle has begun by LMC, in collaboration with Foxconn EV ecosystem, including MIH consortium.
- Foxconn has agreed to make an additional investment in Lordstown Motors of up to $170 million, subject to certain terms and conditions.
Challenges Ahead
- Production is expected to increase towards the end of the month as the remaining supplier part pedigree and availability issues are resolved.
- Approximately 30 commercial units of the first batch are estimated to be built by the end of 2022, with the remainder built in the first half of 2023.
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