Photo: Lordstown Motors
Lordstown’s deal with Foxconn gave the new company a bit more air to survive until its electric pickup truck was ready. The company has now disclosed that it just produced the first two units of the Endurance and that a third one is about to be completed. While that seems modest for a company that wants to compete in a tough market segment, it is a win – a small one, sure, but a victory nonetheless.
Lordstown said the two completed electric pickup trucks are part of the first 500-unit batch that the company intends to deliver by the first half of 2023. The startup’s CEO recognized that this is a “slow rate,” but Edward Hightower said this is the case because the company is addressing “remaining part pedigree and part availability issues.” If that is affecting giants such as Toyota and Volkswagen, it is fair to expect it to hit startups even harder.
Think about it: the purchasing power of a massive automaker is huge. It will not order a few thousand components each time it talks to a supplier: it will order millions. The priority such a customer has must be enormous compared to that of a company that has not delivered a single product so far and is publicly struggling with getting more funds.
Lordstown anticipates it will end Q3 2022 “with approximately $195 million in cash and cash equivalents, including $27.1 million of proceeds from equity issuances.” For the end of the year, that amount should be reduced to “approximately $110 million in cash and cash equivalents.” Even if the Endurance is exceptionally profitable, it will only pay off after a large number is sold to compensate for its development investments: that’s how mass production works.
Surprisingly, Lordstown said that the “FMVSS crash testing has been completed successfully, and EPA and CARB applications have been submitted.” The company also said that the electric pickup truck is still accumulating test miles and finalizing other certifications. If Lordstown has already started making the production version of the Endurance, all tests and certifications should have been concluded. The startup must be hoping the pending ones will not require changes to the pickup.
Think about it: the purchasing power of a massive automaker is huge. It will not order a few thousand components each time it talks to a supplier: it will order millions. The priority such a customer has must be enormous compared to that of a company that has not delivered a single product so far and is publicly struggling with getting more funds.
Lordstown anticipates it will end Q3 2022 “with approximately $195 million in cash and cash equivalents, including $27.1 million of proceeds from equity issuances.” For the end of the year, that amount should be reduced to “approximately $110 million in cash and cash equivalents.” Even if the Endurance is exceptionally profitable, it will only pay off after a large number is sold to compensate for its development investments: that’s how mass production works.
Surprisingly, Lordstown said that the “FMVSS crash testing has been completed successfully, and EPA and CARB applications have been submitted.” The company also said that the electric pickup truck is still accumulating test miles and finalizing other certifications. If Lordstown has already started making the production version of the Endurance, all tests and certifications should have been concluded. The startup must be hoping the pending ones will not require changes to the pickup.
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