By Dhirendra Tripathi
Investing – Lordstown Motors (NASDAQ: RIDE ) shares slipped more than 13% in Tuesday’s premarket as the company halved its 2021 production target while talking about a need to raise more capital.
The company Monday said it expects to produce half the number of vehicles it had forecast for this year even as it now sees its 2021 operating expenditure rising to $335 million-$350 million from $220 million-$235 million forecast in March.
According to NYT, Lordstown would be able to make as many as 2,200 trucks by the end of the year if it gets funding. Without additional capital, it would probably make fewer than 1,000.
The electric vehicle start-up sounded a note of caution, saying it has “encountered some challenges, including COVID-related and industry-wide related issues, as we progress towards our start of production deadline”.
The company reported widening of losses from $11.99 million in March quarter last year to $125 million in the same period this time.
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