Lordstown Endurance Truck: Disappointing Range and Uncertain Future
The Lordstown Endurance, an electric pickup truck, has been in the news for all the wrong reasons lately. The company has confirmed that it loses money on every truck it sells, and now, the EPA has revealed that the model has a disappointing range of just 174 miles (280 km). This is less than previous estimates of 193 miles (311 km) and a far cry from the automaker’s promise of a range in excess of 250 miles (402 km) a few years ago.
The Lordstown Endurance’s range pales in comparison to its competitors. The Ford F-150 Lightning offers EPA ranges of between 240 and 320 miles (386 and 515 km), while the Rivian R1T can travel between 289 and 328 miles (465 and 528 km). Lordstown doesn’t list the truck’s price on their website, but the model was originally slated to start at $52,500 before incentives. However, it’s largely a moot point as the F-150 Lightning begins at $59,974.
Lordstown’s troubles don’t end there. The company is facing a breach of agreement lawsuit from Foxconn, which is trying to bail on Lordstown. Foxconn claimed that the beleaguered automaker was in breach of their agreement as the company’s stock price fell below the minimum required for being listed on the Nasdaq. Lordstown fired back by saying the breach allegations were without merit and Foxconn was intentionally trying to “invalidly terminate” the agreement.
Lordstown has also admitted that “there is substantial doubt regarding our ability to continue as a going concern” and noted that their “ability to obtain additional financing is extremely limited under current market conditions.” The company added that it could be forced to “curtail or cease operations” and file for bankruptcy.
A filing with the U.S. Securities and Exchange Commission revealed that “Due to the production delays from early January to mid-April 2023, the failure to identify a strategic partner for the Endurance, and [our] extremely limited ability to raise capital in the current market environment, we anticipate production of the Endurance will cease in the near future.”
Since those developments, Lordstown did a 1:15 reverse stock split to boost its stock price in “order to satisfy Nasdaq’s $1.00 minimum bid price requirement.” This occurred a little over a week ago, and the stock is now hovering at $3.24 per share.
In conclusion, the Lordstown Endurance truck is facing a bleak future. With a disappointing range and uncertain future, it’s unlikely that the company will be able to turn things around anytime soon.
