TNI || New Delhi || 13th Nov 2021
The Ohio based electric vehicle startup Lordstown Motors Corp has confirmed the delay of next year launch of Endurance electric pickup truck by a quarter.
The reason for the delay has been attributed to material shortage and supply chain issues which have led to the shares of the company dripping down by 11%.
While reporting its third-quarter results, Lordstown said that it would now go ahead with production and delivery of Endurance from the third quarter of 2022, rather than opting for the second quarter, which it had predicted in August.
Lordstown CEO, David Ninivaggi has confirmed that the company is focused on Endurance and that they have to get the truck out.
Ninivaggi further said that the quarter has been challenging with all-around shortages that have caused disruptions, especially from International sourcing, but they are doing everything they can to mitigate the issues.
The truck, according to him, will be out as per the revised schedule. The rollout of Endurance is not the only worry for Lordstown. They already have unwanted attention caused due to a short-seller report accusing them of misleading investors.
This episode has led to their CEO’s resignation too. Lordstown is still under scrutiny by federal prosecutors and the country’s securities and exchange commission.
After Lordstown had announced the deal with Taiwan’s Foxconn to buy its plant in Ohio and thereby take control of Endurances’s production, it has now signed an MoU with Cox Automotive as well. Under the deal, Cox will share support for Lordstown EV’s, which will consist of vehicle maintenance and roadside assistance, among other services.
Lordstown executives are refraining from providing any financial forecast for 2022, and the company is expected to end the year with cash balances that may as well reach $180 million. This includes an expected initial payment from Foxconn amounting to $100 million.