Why Lordstown Motors Is Falling Sharply Today

Benzinga2021-05-25

Lordstown Motors Corp (NASDAQ:RIDE) is trading significantly lower Tuesday morning after the company reported worse-than-expected earnings results.

What Happened: Lordstown Motors 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.

Lordstown Motors 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.

Related Link: Lordstown Motors Shares Fall On Lowered Unit Guidance, Need For Capital

Morgan Stanley maintained Lordstown Motors with an Underweight rating and lowered the price target from $12 to $8 on Tuesday.

Upcoming Event: 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.

Price Action: Lordstown Motors traded as high as $31.56 and as low as $6.69 since it began trading on the Nasdaq on Oct. 26.

At last check Tuesday, the stock was down 13.20% in premarket trading at $8.39.

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