Business

Lordstown expects to sell 500 Endurance electric vans even as costs soar

Electric vehicle startup Lordstown Motors on Monday said it plans to sell its first 500 Endurance electric pickup trucks this year even as launch-related costs surge in the fourth quarter, sending shares back of the company fell 16%.

The company, when listed under previous management, had previously forecast sales of about 32,000 vehicles in its first production year.

Goldman Sachs analyst Mark Delaney said the 500-car target was “much lower” than Street’s estimate and had based his sales estimate on 2,250 deliveries in 2022 and 10,000 by year 2023.

The Ohio-based startup delayed the launch of its new electric truck by three months due to supply chain issues and never sold the vehicle nor recorded any revenue in the fourth quarter.

Legacy automakers have made a drastic shift to focus on electric cars as demand grows, while startups are gearing up to launch new products this year. making the competition stiffer as they try to grab the industry leader Tesla.

Lordstown is spending big to roll out its first truck that will compete with new electric trucks from Ford and General Motor, which are also expected to hit the market this year. It is expected to increase production fivefold by 2023.

A sign that says Ride with Lordstown
The company aims to compete with auto giants like Ford Motor.
Bloomberg via Getty Images

The company’s CEO Dan Ninivaggi – who replaces CEO Steve Burns after he steps down in 2021 – said the cost of materials and components at launch will be significantly higher than the projected selling price. of the vehicle but will improve over time.

In Q4, net loss increased to $81.2 million as it incurred a total of $115 million in expenses, some related to Endurance’s commercial launch.

Lordstown is also in discussions with Taiwanese tech company Foxconn Technology to develop the vehicle and has been looking at alternatives to raise capital for the partnership.

https://nypost.com/2022/02/28/lordstown-expects-to-sell-500-endurance-electric-trucks-even-as-costs-surge/ Lordstown expects to sell 500 Endurance electric vans even as costs soar

DUSTIN JONES

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