Automotive company Lordstown Motors RIDE reported its third-quarter financial results after close Thursday and provided a company update on its timeline.
What Happened: Lordstown reported a net loss of $95.8 million in the third quarter and no revenue. The company ended the quarter with $233.8 million in cash.
Earlier this week, Lordstown Motors announced an update on its partnership and asset sale with Hon Hai Precision Industry, also known as Foxconn.
Lordstown is selling its Lordstown plant in Ohio to Foxconn and will enter into an agreement that will see Foxconn manufacture its Endurance electric pickup truck.
The plant will be sold for $230 million with payments made of $100 million in November, $50 million in February 2022, $50 million in April 2022 and an additional $30 million at a later date.
Foxconn made a $50 million equity investment in RIDE shares in October at a price of $6.90 per share.
Related Link: Why Lordstown Motors Shares Are Trading Higher Today
“Our partnership with Foxconn will unlock the tremendous potential of the Lordstown automotive plant, enable us to reduce the overall cost of bringing the Endurance to market and position us to be able to jointly develop vehicles with a partner that has significant scale,” the company said.
What’s Next: The company said it built and tested prototype vehicles in the third quarter. Lordstown also signed additional non-binding deals from several commercial customers in the third quarter.
Lordstown plans to begin production and deliveries of the Endurance in the third quarter of 2022.
Lordstown expects to end the year with a cash balance of $150 million to $180 million.
Price Action: RIDE shares are down 1% to $6.81 in after-hours trading Thursday. Shares were up 24% in the regular trading session.
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