November 09, 2022: -On Tuesday, Struggling electric truck startup Lordstown Motors is planning to deliver the initial examples of its Endurance pickup truck before 2022, the company, a day after it stated the latest investment from Taiwanese contract manufacturer Foxconn.
Lordstown said it is now building the Endurance at “a prolonged rate” while it works to build out its people line and awaits final regulatory approval to sell the trucks. The company expects to build 30 pickups for sale by this year and to complete the remainder of the first batch of 500 trucks by 2023.
Lordstown said that it hoped to build 50 trucks by year-end. To date, it has completed 12 trucks.
On Tuesday, Lordstown’s shares were up more than 15% in premarket trading.
On Monday, the company said that Foxconn, which owns a stake in Lordstown and bought its Ohio factory for $230 million in May, will invest over $170 million in three phases, with the initial $52.7 million in this month. Once those investments are made, Foxconn will own nearly 18% of Lordstown and have the right to designate two members to its board of directors.
Lordstown said it would use part of that investment to develop a new vehicle with Foxconn. The companies had announced a joint venture to create a new model; the new funding is replacing that joint venture.
The investment support addresses a lack of capital waiting for Lordstown’s efforts to start the production of Endurance.
Lordstown previously stated to the investors that its initial batch of Endurance pickups would be limited to a huge 500 vehicles because the cost of building a pickup is at present “materially higher” than the company’s anticipated selling price. Additional investments in manufacturing tooling are bringing the cost down, but CEO Edward Hightower has deferred those investments to keep the cash.
On Tuesday, Lordstown said it wants an automaker partner to help scale up the production of the Endurance.
The updates are coming as part of Lordstown’s third-quarter earnings report. Lordstown is not recording record revenue, which reported a net loss of $154.4 million, or 73 cents a share, which includes nearly $75 million in non-cash accounting charges connected to the sale of its factory to Foxconn.
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