Lordstown Motors goes in reverse on potential Foxconn stumbles

Feb. 28, 2022 3:31 PM ETLordstown Motors Corp. (RIDE)By: Clark Schultz, SA News Editor21 Comments

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Lordstown Motors Corp. (RIDE -21.7%) reversed an early gain on Monday after investors took in the company's production update and warning that it may need to raise more cash.

Company executives said the electric vehicle maker will need to raise $250M this year for its business operations. They also discussed some potential hurdles with the Foxconn deal during the earnings call (transcript).

Foxconn update: "While our discussions with Foxconn have been constructive and are ongoing, at this stage no definitive product development agreement and funding arrangement has been reached. We and I believe Foxconn understand that reaching a conclusion as soon as possible on this element of the transaction is important for the overall success of our partnership. I also believe that a joint product development agreement with an appropriate funding structure would greatly enhance our ability to raise the additional capital necessary to not only fund new vehicles, but to bring the Endurance into production in Q3. Clearly, we and Foxconn have more work to do."

Shares of Lordstown Motors (NASDAQ:RIDE) fell close to their 52-week low of $2.18 earlier in the session.

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