Lordstown Motors Corp. (Nasdaq: RIDE) released on Thursday its Q3 2021 financial results, which saw the company notch a $95.8 million net loss. This is a decrease from Q3 2020’s net loss of $42.5 million.
The quarterly loss stemmed from no revenue on record and with a US$99.3 million in operating expenses. “Since the beginning of the fourth quarter, we have begun building the first of what we expect to be approximately 100 pre-production vehicles that we will use to pursue a variety of validation activities aimed at achieving full homologation,” said Lordstown Motors CEO Dan Ninivaggi.
The electrical vehicle maker relayed that it expects that commercial production and deliveries of its Endurance vehicle will begin in Q3 2022.
The firm also points to its recently announced “agreement in principle” with Foxconn as the potential precursor for the Lordstown automotive plant, aimed to reduce overall cost in bringing its line of electric pickup trucks to the market. “The third quarter marked a significant strategic shift for Lordstown Motors,” added Ninivaggi.
The company’s quarterly loss translates to US$0.54 per share.
The quarter ended with US$233.8 million in cash and cash equivalents balance from US$629.8 million beginning balance at the start of the year. The cash burn is mainly due to a running net loss of US$329.2 million and US$255.5 million worth of asset purchases for the first nine months. This brought the balance of current assets at US$256.7 million while current liabilities ended at US$87.9 million.
The automaker expects cash balance by end of 2021 to be between US$150 million and US$180 million, including the anticipated a US$100 million downpayment from Foxconn through the asset purchase agreement.
Lordstown Motors last traded at US$6.89 on the Nasdaq.
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