Investor's Corner
Lordstown Motors continues cash flow woes, sells Ohio plant to iPhone manufacturer Foxconn
Lordstown Motors, an electric vehicle startup based in Ohio, has announced that it has agreed in principle to work jointly on electric vehicle programs with iPhone manufacturer Hon Hai Technology Group, more commonly known as Foxconn.
Lordstown announced earlier this year that it was struggling with significant cash flow problems and that it would likely not sustain enough capital to keep its doors open through the end of June 2022. Lordstown said in a June 2021 filing with the SEC that its ability to stay open “is dependent on its ability to complete the development of its electric vehicles, obtain regulatory approval, begin commercial-scale production and launch the sale of such vehicles.” With cash issues, the automaker was likely forced to enter a joint partnership with a company that did not have financial worries. Foxconn appears to be Lordstown’s choice.
On Thursday, Lordstown confirmed the joint partnership with Foxconn:
Lordstown Motors Corp, a provider of electric light duty trucks focused on the commercial fleet market, today announced that the Company and Hon Hai Technology Group (“Foxconn”) have reached an agreement in principle to work jointly on electric vehicle programs in the Company’s assembly plant in Lordstown, Ohio. In connection with this announcement, the Company is today updating its production plan and financial outlook.”
Following the June 2021 filing that indicated Lordstown was set for closure within a year, the company made several changes in its boardroom. It relieved CEO Steven Burns and CFO Julio Rodriguez of their duties just days later. After appointing Becky Roof to Interim CFO and Angela Strand to Executive Chairwoman, the company then began to scramble to find financial support. However, Lordstown’s worries did not end there. Following a report from Hindenburg Research that claimed Lordstown was exaggerating its pre-order figures, especially after former CEO Burns stated that the company had accumulated 100,000 orders for its initial vehicle, the Endurance pickup.
The SEC decided to issue a post-effective amendment No. 2 to an S-1 registration statement, requesting more information and documentation that could prove Lordstown’s claimed pre-order counts. Lordstown obliged to the subpoenas. In late August, it announced that its new CEO would be Daniel Ninivaggi, a veteran of both Icahn Automotive Group LLC and Hertz Global Holdings, Inc. where he served as Director.
The new partnership with Foxconn helps Lordstown solidify its plans to manufacture the Endurance:
The Lordstown Motors team continues to move forward with its plan to build a limited number of vehicles for testing, validation, verification and regulatory approvals during the balance of 2021 and the first part of 2022. In light of the Foxconn agreement, the Company will evaluate the potential impact of the parties’ contract manufacturing relationship on commercial production, supply chain opportunities with Foxconn and the appropriate integration and timing of the parties’ operations teams and will provide an update on its production plan during our upcoming Q3 2021 earnings call currently slated for mid-November.”
It also updated its financial outlook, which consists of revised figures from the Q2 2021 Earnings Call:
- Capital expenditures – unchanged in total from $375 to $400 million, including changes in timing of tooling and equipment purchases and the inclusion of forecasted soft tooling expense purchases previously included in R&D expense.
- SG&A expenditures – $105 to $120 million, up from $95 to $105 million, primarily due to higher legal and professional fees.
- R&D expenditures – $320 to $340 million, up from $310 to $320 million, largely due to increased prototyping and pre-production expenses, reduced by the impact of moving forecasted soft tooling expense to capital expenditures as mentioned above.
- Cash balance on September 30, 2021 – $210 to $240 million, down from $225 to $275 million, which includes approximately $20 million of proceeds from the issuance of common stock under the Company’s Equity Purchase Agreement in August and September but excludes proceeds from Foxconn’s purchase of $50 million of the Company’s common stock as announced today.
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Investor's Corner
Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”
That phrase could be used for both the company’s status and the world in general.
Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.
He describes the global shift that will occur over the next few years:
“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”
The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.
Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:
“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”
Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.
Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter
He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.
Elon Musk
Tesla stock gets crazy prediction from CEO Elon Musk
Musk says this is what it would take to be a millionaire from a Tesla investment right now.
Tesla stock (NASDAQ: TSLA) got a crazy prediction from CEO Elon Musk recently, as the future of the company seems to be moving more toward AI, autonomy, and robotics, and away from automotive, which is what it has traditionally been recognized as.
Over the past few years, as Tesla has prioritized its Full Self-Driving suite, its rollout of a dedicated Robotaxi program, and the development of the Optimus bot, the company has gained a new reputation from analysts.
It was always looked at as a stock with tremendous potential by many Wall Street firms, some more than others.
The most bullish analysts, like Cathie Wood of ARK Invest, believe the company will eventually reach a multi-trillion-dollar valuation and a share price of over $2,000. Her $2,600 price target does not include any contributions of Optimus. Instead, it leans on Full Self-Driving and Robotaxi.
Based on where the company is now, there are a lot of potential catalysts. The Robotaxi expansion, as well as affordable vehicles, its prowess in AI and Robotics, and its powerful energy division are all arguments for investment.
One X user said that a $150,000 investment in Tesla right now would likely make you a millionaire. Musk said he thinks that sentiment is “probably correct.”
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
He’s echoed this belief in recent earnings calls, including the one for Q2, which happened in July:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
Tesla is trading at $316.50 at the time of writing, and has a market cap of just under $1 trillion.
Elon Musk
Tesla stock gets another analysis from Jim Cramer, and investors will like it
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company.”
Tesla stock (NASDAQ: TSLA) got its latest analysis from Jim Cramer, and investors will like what he has to say.
Cramer has flip-flopped his thoughts on Tesla shares many times over the years. One time, he said CEO Elon Musk was a genius; the next, he said Ford stock was a better play. He’s always changing his tune.
However, Cramer’s most recent analysis is of a bullish tone, as he talks about the company’s evolution from an automaker to a tech powerhouse. He made the comments on CNBC’s Mad Money:
“Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where it’s going to.”
Jim Cramer last night on $TSLA: “Tesla is morphing right now. It’s in transition from being a car company to being a technology company. You wanna be in there because the tech is worth a lot more than what it’s selling for right now. Don’t care where you bought it, care where… pic.twitter.com/WzlPdQD7gq
— Sawyer Merritt (@SawyerMerritt) August 5, 2025
Tesla has always been looked at by the mainstream media as an automaker. While that is its main business currently, Tesla has always had other divisions: Energy, Solar, Charging, AI, and Robotics. Some came after others, but the important point is that Tesla has not been an automaker exclusively for a decade.
It launched Powerwall and Powerpack in April 2015, marking the start of Tesla Energy.
But Cramer has a point here: Tesla is truly becoming much more than a car company, and it is turning into an AI and overall tech company more than ever before. Eventually, it will be recognized as such, more so than it will be as an automotive company.
Cramer’s comments also follow a recent prediction by Musk, who stated on X that he believes a $150,000 investment in Tesla shares right now would eventually turn someone into a millionaire:
I think this is probably correct
— Elon Musk (@elonmusk) August 5, 2025
Musk has said he believes Tesla could be headed to a serious increase in valuation. Eventually, it could become the most valuable company in the world. He said this during the Q2 Earnings Call:
“I do think if Tesla continues to execute well with vehicle autonomy and humanoid robot autonomy, it will be the most valuable company in the world. A lot of execution between here and there. It doesn’t just happen. Provided we execute very well, I think Tesla has a shot at being the most valuable company in the world. Obviously, I am extremely optimistic about the future of the company.”
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