LORDSTOWN, Ohio, Sept. 29,
2022 /PRNewswire/ -- Lordstown Motors Corp. (Nasdaq:
RIDE), ("Lordstown Motors" or the "Company"), an original equipment
manufacturer ("OEM") of electric light duty vehicles focused on the
commercial fleet market, today announced that it has started
commercial production of its Endurance™ full-size pickup
truck, and provided a business update.
- Start of production of commercially saleable Endurance vehicles
at the Foxconn EV Ohio plant
- Production volume will ramp slowly as a result of supply chain
constraints; engineering readiness, quality, and part availability
will continue to govern the speed of launch
- FMVSS confirmation crash testing successfully completed
- EnduranceTM has been named as one of only three
semi-finalists in the North American Truck of the Year
competition
- Confirming Q4 start-of-sales, subject to full homologation
testing and required certification
- Expect to end the quarter with cash and cash equivalents of
approximately $195 million
- Continue to explore capital raising alternatives, including in
connection with initial Foxconn JV program and strategic
partnership discussions
Executive Commentary
Lordstown is pleased to
announce that our first two commercial release production (CRP)
Endurance™ vehicles have rolled off the production line at the
Foxconn EV Ohio plant, with the third expected to be completed
shortly. These vehicles are part of the first batch of up to 500
saleable vehicles that we intend to build.
"We will continue to build at a slow rate as we address
remaining part pedigree and part availability issues. We expect to
increase the speed of production into November and December," said
Edward Hightower, Lordstown CEO and
President. "Our homologation and certification processes are
proceeding as planned."
FMVSS crash testing has been completed successfully, and EPA and
CARB applications have been submitted. We also continue to
accumulate test miles on the vehicles, finalize other
certifications, and complete software updates as we work to ensure
the best experience for our customers. We expect to deliver
approximately 50 units to customers in 2022 and the remainder of
the first batch in the first half of 2023, subject to raising
sufficient capital.
We are also excited to be named a semi-finalist in the North
American Truck of the Year competition. We look forward to the
judges' evaluations of the Endurance™ this fall.
We anticipate ending the third quarter with approximately
$195 million in cash and cash
equivalents, including $27.1 million
of proceeds from equity issuances during the third quarter of 2022.
We now anticipate ending 2022 with approximately $110 million in cash and cash equivalents,
excluding both any additional capital raises and funding of any
contingent liabilities. Our cash outlook is better than our
previous outlook by approximately $75
million and we continue to explore opportunities for capital
raising alternatives, including in connection with the initial
Foxconn JV program and strategic partnerships.
About Lordstown Motors
Corp.
Lordstown Motors is an electric vehicle (EV) OEM developing
innovative light duty commercial fleet vehicles, with the Endurance
all electric pickup truck as its first vehicle and being launched
in the Lordstown, Ohio facility.
Lordstown Motors has engineering, research and development
facilities in Farmington Hills,
Michigan and Irvine,
California. For additional information visit
www.lordstownmotors.com.
Forward Looking
Statements
This press release includes forward-looking statements. These
statements are made under the "safe harbor" provisions of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
may be identified by words such as "feel," "believes," expects,"
"estimates," "projects," "intends," "should," "is to be," or the
negative of such terms, or other comparable terminology.
Forward-looking statements are statements that are not historical
facts. Such forward-looking statements are not guarantees of future
performance and are subject to risks and uncertainties, which could
cause actual results to differ materially from the forward-looking
statements contained herein due to many factors, including, but not
limited to: the need to raise substantial additional capital to
execute our business plan, achieve our production targets for the
Endurance, achieve scaled production of the Endurance, to continue
ongoing operations and remain a going concern, and our ability to
raise such funding on a reasonable timeline and with suitable
terms; the cost and other impacts of contingent liabilities such as
litigation, regulatory proceedings, investigations, stockholder
letters and claims and availability of insurance coverage and/or
adverse publicity with respect to these matters, which may have a
material adverse effect, whether or not successful or valid, on our
liquidity position, cash projections, business prospects and
ability and timeframe to obtain financing; our limited operating
history and our ability to execute our business plan, including
through our relationship with Foxconn; our ability to raise
sufficient capital in order to invest in the tooling that we expect
will enable us to eventually lower the Endurance bill of materials
cost, continue design enhancements of the Endurance and fund any
future vehicles we may develop; the rollout of our business and the
timing of expected business milestones, including our ability to
complete the engineering of the Endurance, Foxconn's ability to
complete the conversion and retooling of its Lordstown facility, to establish and maintain
appropriate supplier relationships, to successfully complete
testing, homologation and certification, and to start delivery of
the Endurance in accordance with our projected timeline; our
ability to successfully identify and implement actions that will
lower the Endurance bill of materials cost; supply chain
disruptions, inflation and the potential inability to source
essential components and raw materials, including on a timely basis
or at acceptable cost, and their consequences on testing,
production, sales and other activities; our ability to obtain
binding purchase orders and build customer relationships; the risk
that our technology, including our hub motors, does not perform as
expected and our overall ability to deliver on the expectations of
customers with respect to the pricing, performance, quality,
reliability, safety and efficiency of the Endurance and to provide
the levels of service and support that they will require; our
ability to conduct business using a direct sales model, rather than
through a dealer network used by most other OEMs; the effects of
competition on our ability to market and sell vehicles; our
inability to retain key personnel and to hire additional personnel;
the ability to protect our intellectual property rights; the
failure to obtain required regulatory approvals; changes in laws or
regulatory requirements or new or different interpretations of
existing law; changes in governmental incentives and fuel and
energy prices; the impact of health epidemics, including the
COVID-19 pandemic, on our business; cybersecurity threats and
compliance with privacy and data protection laws; failure to timely
implement and maintain adequate financial, information technology
and management processes and controls and procedures; our ability
to remain in compliance with our debt covenants, our ability to
repay the obligations when due, and the risks associated with
having pledged significant assets as collateral for recently
obtained indebtedness; and the possibility that we may be adversely
affected by other economic, geopolitical, business and/or
competitive factors, including the direct and indirect effects of
the war in Ukraine. In addition,
the transactions entered into with Foxconn are subject to risks and
uncertainties. No assurances can be given that we will successfully
implement or that we will realize the anticipated benefits from the
recently completed transactions with Foxconn, including the
contract manufacturing agreement and the joint venture to jointly
develop additional EVs for launch. If we are unable to maintain our
relationship with Foxconn or effectively manage outsourcing the
production of the Endurance to Foxconn, we may be unable to ensure
continuity, quality, and compliance with our design specifications
or applicable laws and regulations, which may ultimately disrupt
and have a negative effect on our production and operations. The
success of the joint venture depends on many variables, including
our ability to utilize the designs, engineering data and other
foundational work of Foxconn, its affiliates, and other members of
the MIH consortium to commercialize, industrialize, homologate and
certify a vehicle in North
America, along with variables that are out of the parties'
control, such as technology, innovation, adequate funding, supply
chain and other economic conditions, competitors, customer demand
and other factors that impact new vehicle development. If we are
unable to develop new vehicles for ourselves and potentially other
OEM customers, our business prospects, results of operations and
financial condition may be adversely affected. We will need
additional funding and will seek strategic partnerships to execute
our business plan and to achieve scaled production of the
Endurance. As we seek additional sources of financing and
strategic partnerships, there can be no assurance that such
financing or partnerships would be available to us on favorable
terms or at all. Our ability to obtain additional financing in the
debt and equity capital markets or through strategic partnerships
is subject to several factors, including market and economic
conditions, the significant amount of capital required, the fact
that our bill of materials cost is currently, and expected to
continue to be, substantially higher than our anticipated selling
price, uncertainty surrounding regulatory approval and the
performance of the vehicle, meaningful exposure to material losses
related to ongoing litigation and the SEC investigation, our
performance and investor sentiment with respect to us and our
business and industry. Additional information on potential factors
that could affect the financial results of the Company and its
forward-looking statements is included in its most recent Form 10-K
and subsequent filings with the Securities and Exchange Commission.
All forward-looking statements are qualified in their entirety by
this cautionary statement.
Contacts:
Investors
Carter Driscoll
IR@lordstownmotors.com
Media
Colleen Robar
crobar@robarpr.com
313-207-5960
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SOURCE Lordstown Motors Corp.