Lordstown Motors (RIDE, $13.52) posts wider loss; reveals SEC probe

Electric truck maker Lordstown Motors  posted  a wider loss for the fourth quarter. It also disclosed an SEC probe following a short-seller's report.

In its first report as a public company, Lordstown reported a net loss of -$38.2 million, or -23 cents a share, widened from -$7.1 million, or 10 cents. Revenue was zero, as the company hasn’t made any vehicles yet.  Cash at year-end 2020 was $630 million.

For 2021, Lordstown projects capital expenditures of $250 million to $275 million, operating expenses of $40 million to $45 million and research and development costs of $180 million to $190 million. It expects to have in year-end cash and cash equivalents at least $200 million.

“We are … so close to delivering our first beta vehicles, which we believe should solidify and spur customer demand and commitments,” Founder and Chief Executive Steve Burns said in a statement.

According to the company, it is on track for starting production of its Lordstown Endurance all-electric pickup truck in September 2021.

Last week short-seller Hindenburg Research mentioned in a repory, “Lordstown is an electric-vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” 

In a conference call with analysts, the company said it is cooperating with a SEC probe that followed the afore-mentioned report.