Shares of Lordstown Motors (RIDE) are down about 18% in early trading after the company reported Q4 losses per share of 42 cents, which was steeper than the company’s loss of 37 cents a share a year earlier. Dan Ninivaggi, CEO of Lordstown, said: “We executed the asset purchase agreement with Foxconn and have made substantial progress on the terms of our contract manufacturing agreement, subject to review by the Committee on Foreign Investment in the US.
I believe the Foxconn partnership is a critical step in unlocking the full potential of the Lordstown facility and brings multiple benefits to LMC. Our ongoing discussions with Foxconn are focused on reaching a definitive agreement for the joint development of future vehicles off the MIH platform with an appropriate funding structure to enable us to raise the necessary capital for the success of our partnership.” He added on the company’s earnings call “Quite frankly, I am disappointed that we’re not further along.
The relationship with Foxconn is very positive and the discussions are ongoing but we need to bring that to a conclusion and I’m hopeful that we’ll get there.” Meanwhile, the company noted its continued efforts to raise additional capital to fund the commercial launch of the Endurance. Lordstown CFO Adam Kroll said on the company’s call: “We understand that raising additional capital in the near term is critical to the successful launch of the Endurance and the execution of our operating plan.” In late morning trading, shares of Lordstown Motors are down about 57c, or 18%, to $2.65.