Down 90% since its market debut, including a 23% year-to-date decline, many investors have written off Lordstown Motors (NASDAQ:RIDE) stock. However, there maybe reason to take another look at the electric vehicle startup.
Why? There have been several developments related to Lordstown Motors in recent days that deserve some attention. While the recent news might not immediately stop the slide in RIDE stock, it could have an impact on the company’s long-term prospects.
Here are three reasons investors should watch Lordstown Motors stock now.
3 Reasons to Watch RIDE Stock
1. There are reports that Lordstown Motors is working on a much-needed rebrand. This comes after its image was tarnished by accusations that it inaccurately stated its stage of development and provided misleading production targets. The company recently removed pricing for its Endurance pickup truck from its corporate website as it undergoes a redesign. However, the company has confirmed that the cost of the Endurance remains at $55,000.
2. It looks like its Endurance fully electric pickup truck might finally be delivered in the second half of this year. That would be a potentially huge development for the company, which has so far failed to deliver any vehicles to customers.
3. Lordstown Motors has been hit with a new fine as part of an ongoing legal case. The company has been ordered to pay a utility services company more than $2.5 million for breaching an agreement the parties signed two years ago. While the fine itself is not good news, the conclusion of the court case removes some element of uncertainty around Lordstown, which is positive. Additionally, experts anticipate that Lordstown will appeal.
What It Means for Lordstown Motors
Taken together, the recent news concerning Lordstown Motors is largely positive. Reports that the company is rebranding, should finally deliver its Endurance pickup truck later this year, and may have put a legal issue behind it all work in its favor. They also provide indications that the Ohio-based startup is starting to put the difficulties of the past year behind it.
That said, RIDE stock continues to slump amid a broader market downturn and extreme volatility, and investors should proceed with caution.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.