Lordstown Motors Corp Chief Executive Steve Burns poses with a prototype of the electrical automobile start-up’s Endurance pickup truck, which it would start constructing within the second half of 2021, on the firm’s plant in Lordstown, Ohio, U.S. June 25, 2020.
Lordstown Motors | Reuters
Electric automobile start-up Lordstown Motors stated that early reservations for its all-electric Endurance pickup have been sturdy and that it plans to double hiring by the top of this 12 months, sending shares of the corporate up by as a lot as 27% Monday.
The firm stated it has acquired about 50,000 nonbinding manufacturing reservations for the automobile, which is tailor-made for industrial patrons somewhat than particular person homeowners. The common order dimension of the reservations is roughly 500 autos, in line with a press launch.
Shares of Lordstown closed at $22.55, up 26%. The firm has a market cap of $3.7 billion. It went public via a particular objective acquisition firm, or SPAC, final month. Lordstown’s inventory has been unstable since going public on Oct.26.
“We continue to make significant progress across all fronts, and we are excited to reveal these developments with the investment community and future customers today,” Lordstown CEO Steve Burns stated in an announcement.
Lordstown stated deliveries of the Endurance are anticipated to start in September 2021, with full manufacturing ramping up all through 2022. The firm expects to supply 40 to 50 new, or “beta,” prototype autos starting in early 2021. The vehicles will likely be used for crash, engineering and validation testing, in line with Lordstown.
The firm stated it’s within the means of doubling its staff to 500 by the top of this 12 months, adopted by 1,500 folks by the top of 2021.
Ohio-based Lordstown is amongst a rising group of electrical automobile start-ups going public via offers with SPACs, which have turn out to be a well-liked means of elevating cash on Wall Street as a result of they’ve a extra streamlined regulatory course of than conventional preliminary public choices. SPAC shares usually get an preliminary pop after the deal is introduced however are likely to underperform the broader market in the long term, in line with Goldman Sachs.