Friday, August 12, 2022

Lordstown teases new car plans for season 4 with partner Hon Hai

We.Electric CarPickup truck startup Lordstown teases, announces season 4 with partnersHon Haiannouncement of new car plans,share priceThis rose to 27% at one point, but like Fisker Lordstown, another electric car company that has a partnership with Hon Hai, faces a funding crunch.

Lordstown reiterated that the first Endurance electric pickup currently launched by Hon Hai will begin mass production this season and deliveries will begin by the end of this year. However, the progress of production is slow, and whether the funds are sufficient. Chief executive Edward Hightower said he could expect to produce only 500 cars by next year.

Lordstown’s Chief Financial Officer Adam Kroll said that Lordstown needed a “large amount of capital” to produce the first 500 pickups, although the company also expected it to require less capital than originally thought.

Shares in Lordstown were up 27% at one point, but they ended the session up just 1.7%, and they’re still down 14% this year.

Lordstown reported operating profit of $61.3 million last quarter, primarily from profit from the sale of its Ohio plant to Hon Hai, of which $101.7 million was from sales and $18.4 million was operating expense from Hon Hai sales.

However, Lordstown reminded in the financial report that if it is unable to maintain its existing relationship with Hon Hai and effectively manage the production of endurance entrusted to Hon Hai, its production and operation would be adversely affected. may have an effect.

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