© Reuters
(Reuters) – Lordstown Motors Corp posted a bigger quarterly loss on Monday as the electric vehicle (EV) maker struggled with production costs and missed a delivery target for its Endurance pickup truck, dragging its shares down about a 5%.
Electric vehicle companies that have gone public in recent years have been battling rising costs and challenges to secure supplies of parts to make enough vehicles to meet growing demand in the sector.
At the start of commercial production in September, the company had set itself the goal of delivering 50 vehicles in 2022 and more in 2023 from the planned first batch of 500 units.
However, it halted production last month due to performance and quality issues with some components and reported sales of just six vehicles. Supply chain restrictions, especially in engine components, are also expected to affect production in the current quarter.
On Monday, Lordstown posted sales of three vehicles and said it incurred $30 million in cost of sales. However, it did not provide a production or delivery forecast for the electric pickup truck during a conference call with analysts.
“We will continue to execute a business plan with limited capital,” said chief financial officer Adam Kroll, adding that Lordstown will need to raise “significantly more” capital to cover costs related to developing its new vehicle.
Net loss for the quarter ended December 31 was $102.3 million, compared to $81.2 million a year earlier. The results included a $36.5 million impairment charge that the company said was primarily due to a decline in its share price.
The company’s cash, cash equivalents and short-term investments were $221.7 million and it expects to have between $150 million and $170 million in cash and short-term investments at the end of the first quarter.
Lordstown also reiterated doubts about its ability to continue as a going concern.
The company’s revenue of $194,000, broadly missed estimates of $1.29 million, while its adjusted loss was higher than expected.