Lordstown Motors (NASDAQ: RIDE) remains resilient as its story continues to be one of trying times, low cash flow, and miscues in early production. It is the latest revelation in automotive startups attempting to enter the competitive field of electric vehicles, and Lordstown is hanging on after it reported its Q4 earnings report on Monday.
Lordstown has $221.7 million in cash and short-term investments, which is a roughly $18 million increase from what it had at the end of Q3. Where its true challenges lie within production and deliveries, which it said it ended the year with only three deliveries.
It has not improved much, either, as through February 2023, Lordstown said it has sold a total of six vehicles in its initial batch of up to 500 units, where only about 40 have been produced thus far.
These low sales figures were caused by production issues that affected performance and quality, which required Lordstown to halt production and issue a recall.
Lordstown’s net loss increased by $20.9 million to $102.3 million compared to last year.
There are some positives, however, as the company’s “Mobility-in-Harmony Consortium” with Foxconn continues to move forward. The company said Foxconn has already contributed $52 million to their partnership, which could yield a new, more stable production model for the company’s lineup of vehicles, which includes a new platform.
“The next platform and vehicle program are key to Lordstown Motors’ long-term business strategy and are becoming a greater portion of our Company’s focus,” Lordstown said.
Disclosure: Joey Klender is not a Lordstown Shareholder.
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