Lordstown Motors sinks 19% as the electric vehicle maker cuts production outlook and seeks more funding
- Lordstown Motors shares fell 19% on Tuesday after saying it needs more money to execute its plans.
- It forecast cash and cash equivalents of $50 million to $75 million by year's end, lower than the previous outlook of $200 million.
- Lordstown said it's been hurt by challenges including higher-than-expected parts costs.
- See more stories on Insider's business page.
Lordstown Motors shares tumbled Tuesday after the company severely cut its annual production guidance and said it needs to raise more money as it aims to start production on its electric pickup truck this year.
The company late Monday said it remains on track to begin producing its Endurance truck in late September, at limited capacity.
"However, we have encountered some challenges," the company said. These include significantly higher-than-expected expenditures for parts and equipment.
It said it needs additional capital to execute on its plans and projected having $50 million-$75 million in cash and cash equivalents at the end of the year, which is less than the $200 million it projected in March.
Shares of the company dropped much as 19% to $7.88 as Tuesday's session got underway. The shares have pulled back from a mid-February high to register losses of roughly 51% so far this year.
Lordstown forecast Endurance production this year would be "at best" 50% of its previous expectations.
The EV startup for the first quarter ended March 31 posted a loss of $0.72, wider than the loss of $0.16 per share a year ago.
The company in March said it was cooperating with financial regulators after a short-seller's report accused the company of misleading investors by overstating its order volume.
Source: Read Full Article