The company reports in its latest quarterly financial report a net loss of $108 million in Q2 2021 (compared to $8 million a year earlier), and over $233 million in the H1 2021 (compared to $20 million a year ago). The sales are at $0, as the product is not yet launched.
Let's recall that Lordstown Motors' two top executives - CEO Steve Burns and CFO Julio Rodriguez - "resigned" from the company in June. One of the issues was the number of vehicle "orders". Some say that there is a lot of them, but then the company released info that "agreements do not represent binding purchase orders or other firm purchase commitments."
With $366 million on hand as of June 30, and an equity purchase agreement for access to $400 million in capital secured in July, Lordstown Motors seeks investors and is looking for additional revenue streams. Things like renting part of the massive site in Lordstown is one of the options.
Lordstown Motors’ Executive Chairwoman Angela Strand said:
“We are also evaluating potential strategic partners, with multiple industry participants recognizing the tremendous advantages available to them from utilizing our well situated, 6.2 million square foot manufacturing plant and 650 acre campus. The size and scope of our facility is such that we could easily accommodate additional manufacturing partners while still affording us the ability to build a successful Endurance program and leverage its skateboard for additional models in the years ahead.”
Lordstown Endurance production roadmap
According to the company, "the plant is production ready" to start production of the Lordstown Endurance pickup:
- retooling of stamping, assembly, body, and paint shops completed
- battery pack line is fully commissioned (Lordstown uses cylindrical cells)
one line has capacity for 10,000 packs a year, and there will be three lines for up to 30,000 packs per year total
- first electric hub motor line has been site commissioned and is currently being installed
The plant was shown during the 2021 Lordstown Week in June:
The beta build program has been concluded and now the plan is to start limited production at the end of September/Q4.
However, it does not mean that customers will be able to buy the trucks. First, the vehicle validation and regulatory approvals are to be obtained in December 2021/January 2022. Then, Lordstown Motors will deploy some Endurance with selected early customers. The general commercial deliveries are expected in the second quarter of 2022. It sounds like another delay, doesn't it?
“We are launching the Endurance with a prudent ramp of production given a challenging industry and supply chain landscape. We are on track to begin limited production at the end of September and through the fourth quarter and complete vehicle validation and regulatory approvals in December and January. This will be followed by deployments with selected early customers in Q1 in advance of commercial deliveries in early Q2, with the ramp steepening the second half of next year.”
Lordstown Motors outlined its five strategic priorities:
The company says that it is working on improved hub motors, as well as various sizes/power levels:
One of the new business areas might be electric vehicles for military use:
There are 2021 objectives and financial outlook:
We are updating the financial outlook for 2021 that we previously provided with our first quarter 2021 earnings release. Revised guidance is as follows:
- Expected Endurance production in 2021 will be limited to coincide with commercialization roadmap.
- Expected capital expenditures of between $375 and $400 million, largely related to prepayments for hard tool purchases.
- Expected operating expenses of between $95 and $105 million in selling, general and administrative (SG&A) costs and between $310 and $320 million in research and development (R&D) costs.
- Expected end of 3Q21 liquidity of between $225 and $275 million in cash and cash equivalents without including any funds from a capital raise.
Lordstown Endurance specs (Design specs):
- more than 250 miles (402 km) of range "(EPA cycle)"
- 109 kWh battery
6,048 cylindrical cells; 12 modules (504 cells per module)
- 0-60 mph (96.5 km/h) in 5.5 seconds (without payload) according to initial specs
- top speed of 80 mph (128 km/h)
- all-wheel drive with 4 in-wheel hub motors (Elaphe's L-1500 Endurance In-Wheel Motor) and custom in hub motor brakes; 20-inch wheels
- peak system output of 600 hp (about 440+ kW)
2,000/4,400 lb-ft (2,711/5,965 Nm) of torque (Continuous/Peak)
- AC charging (11 kW on-board charger): in 10 hours
- DC fast charging: 20-80% SOC in 30-90 minutes (expected up to 150 kW)
- Off-board power for tools and accessory (stationary): 110/120V, 20 A (the website says also 30 A)
- seating for 5
- towing capacity up to 7,500 lbs (3,402 kg)
- gradeability at GVW: 30%
- price: around $55,000
compared to the initially expected price of $52,500 ($45,000 after deducting federal tax credit of $7,500)
- warranty: 3-years bumper to bumper; 8-years battery and hub motors