Yesterday, Lordstown Motors announced its first profitable quarter of $61.3 million, but not from selling electric vehicles. After selling some of its assets, including its Ohio production plant, to Taiwanese manufacturer Foxconn, Lordstown generated $101.7 million and another $18.4 million in operating expenses reimbursement.
The company’s stock increased 4.8% in premarket trade as it also reduced its estimated capital needs for the year, citing fewer expenses, from around $150 million to between $50 million and $75 million.
Foxconn intends to utilize the plant to assemble Fisker’s PEAR EV in the meanwhile. Additionally, the business established a joint venture with Foxconn, where Lordstown would serve as its primary electric vehicle (EV) partner in North America.
Lordstown’s basic operational costs decreased 47%, down significantly from the previous quarter and 33% from the same period in 2017.
Production of the Endurance pickup, according to Lordstown CEO Edward Hightower, will be gradual and heavily dependent on financial availability. According to him, the company only plans to make 500 cars through the beginning of 2023, which is a very modest manufacturing ramp-up by industry standards.
Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.
Be sure to follow us on Facebook, LinkedIn, and TikTok to stay up to date.
While you’re here, don’t forget to subscribe to our email newsletter for all the latest auto industry news from CBT News.
