RIDE Reports Dismal Sales Figures
Lordstown Motors, an electric vehicle start-up, reported poor sales and earnings for the fourth quarter, with a loss of 45 cents per share from only $194,000 in sales. This is below Wall Street’s expectations of a 32 cents-per-share loss from roughly $7 million in sales. However, the company recognized the sale of three vehicles in the quarter as production has just begun.
Lordstown did not provide a 2023 outlook for production in the earnings release, but it updated investors on its cash balances, which improved to $222 million from $200 million at the end of the third quarter, with an expected balance of $160 million at the end of the first quarter. This improvement in cash may be the reason for the small increase in the beaten-up stock in early trading.
Lordstown had set a target of producing 31,600 trucks in 2022 and 65,000 trucks in 2023, estimating the 2023 target would generate around $3.5 billion in sales. However, coming into Monday trading, shares were down about 2% so far this year and off about 49% over the past 12 months, down about 96% from an all-time high of almost $32 a share reached in late 2020.
RIDE Stock Price Forecast & Analysis
Stock Target Advisor’s analysis of Lordstown Motors Corp’s stock shows a bearish outlook, which suggests that the stock is likely to underperform the market in the near future. The bearish outlook is based on 6 negative signals and 1 positive signal.
The negative signals include a decrease in the stock’s price over the past month, underperformance compared to the market, weak technical indicators, and negative insider trading activity. The positive signal is based on news sentiment, which suggests that the company has received some positive news coverage recently. (https://yellowtail.tech/)
As of the last closing, Lordstown Motors Corp’s stock price was USD 1.12. The stock has shown a slight improvement over the past week, increasing by +5.66%. However, over the past month and year, the stock has significantly underperformed the market, with a decline of -23.81% and -48.62% respectively.
