Lordstown Motors Corp (NYSE:RIDE) is trading significantly lower Tuesday morning after the company reported worse-than-expected earnings results.
Lordstown on Monday afternoon reported an earnings loss of 72 cents per share, which was much lower than the loss of 16 cents it reported in the same quarter last year.
"We have passed," said Monday’s press release concerning earnings, "two of the most difficult crash tests – frontal and pole – and vehicles are performing as planned during other durability and validation tests; we continue to expect we can achieve a 5-star crash rating.
"Retooling of stamping, assembly, body, and paint shops at our Lordstown plant are nearly complete.
"Phase One of our battery line is installed and is in the commissioning phase, while our first electric hub motor line remains on track to begin equipment installation in July."
Lordstown announced that its goal of beginning production in September 2021 remains on track, however, it noted that the Lordstown Endurance production in 2021 will be limited to 50% of the company's prior expectations at best.
Morgan Stanley maintained Lordstown Motors with an underweight rating and lowered the price target from $12.00 to $8.00 on Tuesday.
Lordstown Motors announced its "Lordstown Week" will take place at the company's Ohio headquarters from June 21-25. The event will be hosted by company executives and feature factory tours, presentations and test drives of the company's electric commercial pickup truck, the Lordstown Endurance.
RIDE shares tumbled $1.33, or 13.7%, to $8.34.
