Lordstown Motors remains resilient as it continues to face trying times, low cash flow and miscues in early production, the latest revelation in automotive startups attempting to enter the competitive field of electric vehicles. Lordstown is hanging on after it reported its Q4 2022 earnings March 6.
Lordstown has $221.7 million in cash and short-term investments, a roughly $18 million increase from the end of Q3 2022. Its true challenges lie within production and deliveries; Lordstown said it ended the year with only three deliveries.
It has not improved much either, as through February, Lordstown said, it has produced about 40 vehicles of its initial batch of up to 500 units, and only six have been sold.
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.
Abby Andrews