Electric pickup truck maker Lordstown Motors presented its fourth-quarter earnings on Monday. The results tell a mostly drab story but there are reasons for positivity despite the fact that it ended up with less than $200,000 in revenue.
Lordstown posted a Q4 net loss of some $102.3 million on Monday. That doesn’t look particularly pretty when compared with Q4 from 2021 where it had a net loss of just $81.2 million. Part of that loss comes as a result of a heavily declining stock price and a subsequent impairment charge of $36.5 million.
On top of that, it said that revenue totaled just $194,000. Wall Street analysts were expecting something in the neighborhood of $1.29 million according to Autonews. Part of that revenue comes from the sale of three vehicles in the quarter. Of course, Lordstown says that it incurred $30 million in the cost of sales during the quarter. Still, production of any type is a good sign that Lordstown isn’t in as gloomy a state as it might seem.
More: Lordstown Stops Endurance EV Production And Deliveries To Address Quality Issues
For one thing, it has over $220 million in cash, cash equivalents, and short-term investments. That’s a solid basis with which to continue production. In addition, it says that it expects to have between $150 million and $170 million in cash and short-term investments at the end of the first quarter. Again, good news for a company that’s been in desperate need of it for some time.
“We will continue to execute a capital-constrained business plan,” CFO Adam Kroll said. Part of that requirement is due to the fact that Lordstown had to pause production and recall 19 of the 31 trucks it built. Building and selling Endurance trucks is just about the most important step that the company takes in 2023 and additional capital will help it do that.
For now, all we can do is wait and see if it’s able to pump out enough electric vehicles to remain sustainable. The company itself has expressed concern about that but now it’s time for the rubber to meet the road.
