The EV startup Lordstown Motors announced Thursday its Q2 2022 financial results reporting an ending cash balance of $236 million ($32M higher than in Q1 2022) and an operating profit of $61.3 million. The result includes a $101.7 million gain on sale plus a $18.4 million reimbursement “of certain operating expenses related to the plant sale”.
The company said the cash balance is above its internal expectations and “extends the runway, due in part to disciplined expense controls and rigorous program management”. Lordstown also mentioned that the first vehicle program from its joint venture with Foxconn is expected to be announced in last quarter of the year.
Lordstown Motors reiterated the third quarter 2022 target for the start of commercial production of the Endurance and commercial deliveries expected in the last quarter of the year. Furthermore, it expects a lower 2H 2022 total operating loss and capital expenditures of between $140 and $150 million.
That excludes contingent liabilities, reducing the minimum capital raise in 2022 from $150 million to $50 to $75 million, the company clarified. The production ramp plan will be aligned with bill of material cost reductions and capital raising, Lordstown added.
“Over the past year, we have recruited and developed an experienced senior management team, made significant progress towards launching the Endurance, transitioned to a less capital intensive and flexible business model, established a new vehicle development platform with Foxconn, and raised some additional capital,” said Daniel Ninivaggi, LMC’s Executive Chairman. “While these were critical foundational steps, we realize that much work remains to be done. Our immediate focus moving forward will be on completing the successful launch of the Endurance; identifying partners, including other OEMs, to jointly scale the Endurance; defining the first vehicle program under our Foxconn joint venture; securing significant customer support for that program; and earning the support from our investors required to raise the additional capital necessary to execute our business plan,” Ninivaggi continued.
“I am excited by my expanded role as CEO of Lordstown and the joint venture with Foxconn. In Q2, we made significant progress towards our plan to launch the Endurance in Q3 of 2022 and begin sales in Q4. We look forward to getting the Endurance into customers’ hands, as we think they are going to love it,” said Edward Hightower, CEO of Lordstown Motors.
“We have also started pre-development work on the first vehicle under our joint venture. Our team is excited to create and launch future products while leveraging the Foxconn EV ecosystem,” Hightower added.
“We are pleased with the outcome of the quarter. The rigorous program management, disciplined cost controls and intense focus by our team allowed us to end the quarter in a better cash position than planned. We have more runway and will need to raise less capital in 2022 than previously forecasted,” said Adam Kroll, Chief Financial Officer of Lordstown. “However, our success and ability to execute our plan remains dependent upon our ability to raise additional capital.”
In mid-July, the company named six key executive appointments including the company’s president Edward T. Hightower with the additional role of CEO, effective immediately. Edward was named Lordstown’ President in November 2021 and has 30 years of experience serving in product development, engineering, manufacturing, commercial, and senior executive roles between Ford, BMW, and GM.
In addition, the company said named Daniel A. Ninivaggi was elected to serve as Executive Chairman of the Board to focus on corporate strategy, strategic partnerships and capital raising, and also Dr. Donna Bell as Executive VP, Product Creation, Engineering, and Supply Chain.