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Lordstown updates production plans; shares plummet

Shares of electric vehicle maker Lordstown Motors (NASDAQ: RIDE) fell as much as 28% in trading yesterday after the startup revealed a lower-than-promised production forecast.

That’s a big fall

Lordstown went public via a special purpose acquisition company back in October 2020. The EV maker, however, has not come even close to what they promised investors prior to going public.

Lordstown expectations before listing

Lordstown initially forecasted starting production sometime in H2-2021. It is projected to produce 2,000 pickup trucks in its first year, followed by 32,000 in its first full year of production (2022).

Fast forward to today

Lordstown still hasn’t started production & expects to begin sometime in Q3-2022. It projects the production of 500 pickup trucks this year, followed by 2,500 pickup trucks next year.

They’re not alone

EV maker Lucid Motors (NASDAQ: LCID) also fell short of production promises for this year, citing “supply chain & logistics challenges.”

This year, the company expects to produce 12,000-14,000 vehicles, down from its initial 20,000 vehicles forecast, causing its shares to sink in after-hours trading.