Why Lordstown Motors Shares Are Falling

Lordstown Motors Corp RIDE shares are trading lower by 19.7% at $2.58 after the company reported fourth-quarter earnings results and said it expects commercial production and sales of the Endurance of approximately 500 units in 2022 growing to as many as 2,500 units in 2023.

Lordstown reported quarterly losses of 42 cents per share which beat the analyst consensus estimate of a loss of 73 cents per share. The EV startup ended 2021 with a cash balance of $244 million, $79 million above the midpoint of the previously issued outlook on disciplined spending, favorable working capital, additional equity issuances and a deferral of certain investments into 2022.

See Also: Why Teladoc Shares Are Trading Higher Today

Lordstown Motors is an automotive company founded for the purpose of developing and manufacturing light duty electric trucks targeted for sale to fleet customers. The company has been developing its flagship vehicle, the Endurance, an electric full-size pickup truck.