By Yasin Ebrahim
Investing.com - Lordstown tumbled in afterhours trading Monday after warning that Endurance production in 2021 would be limited and fall short of its prior guidance by at least 50% as costs continue to rise.
Lordstown Motors Corp (NASDAQ:RIDE) was down about 8% in afterhours trading.
"Expected Endurance production in 2021 will be limited and would at best be 50% of our prior expectations," the company said, adding that it would need to raise funds to execute on its strategy.
"The timeline to start of production late-September 2021, which will be at limited capacity, remains on track. To-date, we have completed construction of 48 out of 57 prototypes and will begin pre-production vehicle (PPV) builds in July."
The downbeat outlook comes as the company reported a Q1 net loss of $125 million.
The company revised upward its 2021 expectations for operating expenses by $115 million at the midpoint of the guidance range provided in its fourth quarter 2020 earnings release to reflect significantly higher spending.
"[W]e have encountered some challenges, including COVID-related and industry-wide related issues, as we progress towards our start of production deadline. These include significantly higher than expected expenditures for parts/equipment, expedited shipping costs, and expenses associated with third-party engineering resources," the company said.