Lordstown Motors Stops Production
Lordstown Motors Corp, an American electric vehicle maker, announced that it would temporarily halt production and deliveries of its Endurance pickup truck due to performance and quality issues with some components. The company has only produced 31 units for sale and has delivered 19 vehicles to customers or used internally, which it has voluntarily recalled. This news caused a drop in the company’s shares by 11.8% to $1.08 in early trading on Thursday.
Lordstown had aimed to deliver 50 vehicles in 2022 and more in 2023 out of the planned first batch of 500 units when commercial production started in September. However, the company did not clarify when it would resume production and deliveries.
Investor Foxconn, which also manufactures the Endurance trucks, did not immediately comment on this matter. Lordstown stated that vehicles waiting for shipment and in process at the manufacturing plant will be fixed before delivery.
In January, the company had expected slow production through its first quarter due to supply chain constraints, particularly with respect to the availability of hub motor components.
RIDE Stock Forecast & Analysis
Stock Target Advisor’s analysis has a bearish rating to Lordstown Motors Corp based on its analysis of the company’s stock. This bearish rating is based on two positive signals and five negative signals that have been identified. The two positive signals could refer to some potential opportunities for the company, while the five negative signals could indicate some risks or concerns about the company’s financial performance or prospects.
At the time of the analysis, Lordstown Motors Corp’s stock price was USD 1.23, and the company’s stock had experienced a decline of -10.87% over the past week, -5.38% over the past month, and -59.00% over the last year. The negative trend in the stock price over the past year suggests that investors may have lost confidence in the company’s ability to deliver strong financial results or meet market expectations. The decline in the stock price over the past week and month could also be due to recent news about the company’s decision to halt production and deliveries of its Endurance pickup truck due to quality issues with some components.
Overall, the bearish rating and negative signals from Stock Target Advisor’s analysis suggest that there may be some risks or challenges facing Lordstown Motors Corp that could impact its financial performance and stock price in the future. It is important for investors to conduct their own research and analysis before making any investment decisions.
