Lordstown Motors Corp. (RIDE) stock has surged 8.9% in the aftermarket because RIDE Provides Production and Financial updates. However, the last trading session closed at $7.98 with an incline of 8.42%.
Production and Financial Update
RIDE announced Production and Financial Update on 30th September 2021. Firstly, the capital expenditures remained unchanged from $375 million to $400 million. This owed to changes in the timing of tooling and equipment purchases. Secondly, the SG&A expenses were $105 to $120 million, up from $95 to $105 million. This indicated the increased legal and professional fees. Thirdly, R&D expenses came out to be $320 to $340 million owing to higher prototype and pre-production costs.
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The Lordstown Motors team is sticking to its goal to produce a small number of cars for testing, validation, verification, and regulatory clearances in the second half of 2021 and the early half of 2022. The Firm will assess the possible impact of the parties’ supply chain management connection on commercial production, supply chain prospects with Foxconn, and then directly connect and timing of the stakeholders’ operations teams in light of the Foxconn agreement.
RIDE and Hon Hai Technology Group Announce Agreement in Principle
On 30th September 2021, RIDE stated that it has struck an agreement in principle to collaborate on Lordstown Motors’ electric car initiatives. The Agreement is non-binding and subject to the negotiation and signing of definitive agreements.
On the same day, the parties signed a subscription agreement. According to this, Foxconn will buy approximately $50 million of RIDE stock. It is the average daily volume adjusted price over the previous 15 trading days prior to the execution of the Agreement in Principle. As Lordstown Motors pursues the manufacture of electric vehicles at its Ohio factory, the deal between the two firms will allow the company to benefit from Foxconn’s technology and manufacturing experience.
RIDE appoints new Chief Executive Officer
RIDE reported on 26th August 2021 that Daniel A. Ninivaggi is the new CEO and a member of the Board of Directors. Ninivaggi is a former CEO of Icahn Enterprises L.P. He began his automotive career as an executive vice president at Lear Corporation. There he was in charge of corporate growth and strategy, among other things. Prior to the sale of Federal-Mogul Holdings Corporation to Tenneco, he served as Co-Chairman of the $8 billion providers of the engine.