Wolfe Research analyst Rod Lache downgraded Lordstown Motors (RIDE) to Underperform from Peer Perform with a price target of $1, down from $18. The stock in premarket trading is declining 7%, or 81c, to $10.64. The analyst says Ford’s (F) electric F-150 reinforces his view that Lordstown will not be competitive in the commercial electric vehicle pickup space.
Lache, who was already questioning the competitiveness of Lordstown’s $52,500 electric pickup truck for fleets, believes Ford’s reveal of $39,900 and $49,900 electric pickups crystalizes his concerns. Ford announced pricing levels that Lordstown simply cannot match, Lache tells investors in a research note.
And Ford’s advantages extend well beyond pricing, as its pickup trucks have proven reliability, performance, service and residuals “that would be tough to match even if Lordstown was able to match Ford’s costs,” says the analyst. He believes the “Lordstown story as we have known it is likely over,” the company does not have a “Plan B,” and that a liquidation to a new entrant or contract manufacturer might be the best option for shareholders.