Lordstown Motors News: Why Is RIDE Stock Tanking Today?

Lordstown Motors (NASDAQ:RIDE) stock is putting it in reverse Monday as investors react to news in the company’s most recent earnings report.

Image of a map showing Lordstown's location representing RIDE Stock.

Source: SevenMaps / ShutterStock.com

A poor outlook is the chief factor affecting RIDE stock today. According to the electric vehicle (EV) company, it only expects to ship 500 of its Endurance EV trucks this year. Then the company goes on to say that number will only rise to as many as 2,500 units in 2023.

Investors were also unimpressed with Lordstown Motors’s adjusted earnings per share beat. The company posted an adjusted EPS of -42 cents in Q4 2021. That’s better than the -73 cents per share Wall Street was expecting. However, it’s also a much wider loss than the -23 cents from the same period of the year prior.

It’s worth pointing out that Lordstown Motors still doesn’t have any revenue to report. The company has yet to sell an EV, which is why there’s no data to include on that front.

AdamKroll, CFO of Lordstown Motors, had the following to say about the company’s most recent results.

“We exercised discipline in our spending activity, made substantial progress towards the launch of the Endurance, and invested in our people, processes and technologies. However, we understand that raising additional capital in the near term is critical to the successful launch of the Endurance and the execution of our operating plan.”

We’re also seeing heavy trading of RIDE stock alongside today’s news. As of this writing, more than 18 million shares of the stock have changed hands. That’s an increase over the company’s daily average trading volume of about 6.8 million shares.

RIDE stock is down 21.3% as of Monday afternoon.

There’s plenty of more stock market news to go over today!

Fortunately, InvestorPlace has traders covered with all the latest happenings for Monday! Among that is what’s behind the rise of Renewable Energy (NASDAQ:REGI) stock today, why shares of Shell (NYSE:SHEL) stock are slipping, as well as stocks to consider during the Russia-Ukraine war. You can find out all about these topics at the following links!

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On the date of publication, William White 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.


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