Electric vehicle maker Lordstown Motors (NASDAQ:RIDE) is revving up today. In fact, RIDE stock is nearly 18% higher on Wednesday morning. So what do investors need to know now?
Importantly, it seems that the move higher in RIDE stock comes as investors process a new milestone for the company. Since completing its SPAC merger, all eyes have been on Lordstown. The company is working toward releasing its Endurance pickup truck, perfect for fleets moving toward electrification. However, while investors wait for that release, Lordstown needs to prove it can muster demand and deliver.
It looks like Lordstown has been doing just that. Earlier this week, the company shared on social media that it has now received 80,000 preorders for its Endurance. This is up significantly from 50,000, its previous preorder update. Investors should note that these are non-binding preorders, and that they come primarily from commercial fleet customers.
Additionally, Lordstown shared in that same message that it is getting ready for September. Familiar investors will note that this is a reference to September 2021, when production will begin on the Endurance. From there, the company hopes to fully scale production in 2022. Although the non-binding nature of the preorders leaves much to be seen, it is certainly a good sign for the up-and-coming electric vehicle maker.
RIDE stock bulls should know that they are not alone in this opinion. In fact, following the preorder update, Lafferty analyst Jaime Perez initiated coverage on RIDE shares. Importantly, Perez set a $35 price target. That implies more than 40% upside, even considering the rally on Wednesday.
So what else do investors need to know about RIDE stock here?
RIDE Stock and Endurance Preorders
Lordstown Motors fans should pay close attention to what the Lafferty analyst had to say about RIDE stock. In addition to the preorder catalyst, Perez found much to like. He cited company improvements to vehicle driving ranges and charging times. As companies like QuantumScape (NYSE:QS) continue to improve on battery tech, other EV names face pressure to innovate. Perez is confident that with those improvements and 80,000 preorders, Lordstown will be set with steady revenue through 2022.
In fact, Perez is estimating that Lordstown will see $1.57 billion in revenue by 2023.
So what should you do here? As with all of the newer entrants to the electric vehicle market, Lordstown faces pressure to prove itself. However, as it analysts warm up to the Endurance maker, things are certainly looking good for RIDE stock.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
