Lordstown Motors’ shares are rising as a result of early demand and strong perspective to constructing an EV pickup truck
Steve Burns, Chief Executive of Lordstown Motors Corp., poses with a prototype of the endurance pickup truck from the electric vehicle startup, which will be built in the second half of 2021 at the company’s facility in Lordstown, Ohio, USA, on June 25 2020 will begin.
Lordstown Motors | Reuters
Electric vehicle start-up Lordstown Motors said early reservations about the all-electric Endurance pick-up were big and plans to double the hiring by the end, which would increase the company’s shares by up to 13% on Monday morning.
Shareholders were also informed of reservations for the vehicle as well as its business plans, including hiring efforts.
The company said it has received around 50,000 non-binding production reservations for the vehicle that are tailored more towards commercial buyers than individual owners. According to a press release, the average order size for reservations is around 500 vehicles.
Lordstown stocks calmed down a bit, but held on to most of those gains, rising about 8% to $ 19.30 per share in morning trading. The company has a market capitalization of $ 3.2 billion. It went public last month through a special purpose vehicle (SPAC). Lordstown’s stock has been volatile since going public, trading between $ 12.80 and $ 21.75 per share as of October 26.
“We continue to make significant strides on all fronts and are excited to introduce these developments today to the investment community and prospective clients,” said Steve Burns, CEO of Lordstown, in a statement.
Lordstown says shipments of the Endurance are expected to begin in September 2021, with full production increasing over the course of 2022. The company expects to produce 40 to 50 new prototype vehicles (“Beta”) by early 2021, crash, engineering and validation tests according to Lordstown.
The company said it was in the process of doubling its workforce to 500 by the end of this year, followed by 1,500 by the end of 2021.
Ohio-based Lordstown is one of a growing group of electric vehicle startups going public through contracts with SPACs. These are a popular way to raise money on Wall Street because they have a tighter regulatory process than traditional IPOs. SPAC stocks typically get their first pop after the deal is announced, but they tend to do worse than the broader market in the long run, according to Goldman Sachs.