Lordstown Motors Corp. (NASDAQ: RIDE)
Lordstown Motors Corp. (NASDAQ: RIDE) is a privately-owned American company that designs and manufactures electric work vehicles. Headquartered in Lordstown, Ohio, Lordstown Motors develops and manufactures Endurance(TM) pickup trucks created explicitly for more productive work environments.
The company was created when Founder and Chief Executive Officer Steve Burns acquired the former General Motors assembly plant in Lordstown, Ohio, on November 7, 2019. The mission of the company is to create a cost-effective and safe work truck with zero emissions.
The First U.S.-Made Electric Pickup Truck
Currently, Lordstown Motors Corp. is working on the release of the first fully electric pickup truck in the United States. The Endurance(TM) will serve as the first American-made commercial electric pickup truck on the market.
The 2021 Endurance(TM) features a revolutionary design that has been built from the ground up to work smarter, safer and more productively. The Endurance(TM) will be the first commercial truck featuring in-wheel hub motors in all four wheels. This feature reduces the number of moving parts on the truck and increases the operator’s ability to control the vehicle. The technological advances associated with having fewer moving parts on the truck are expected to allow for lower maintenance costs and an overall lower cost of ownership. With all four wheels designed to move with independent motors, the Endurance(TM) is the true definition of a four-wheel-drive truck.
The pickup’s range of operation is estimated at 250+ miles before charging is needed. For a 95% state of charge, using a level 2 AC charger will take about 10 hours to complete. Conversely, a level 3 DC fast charger can complete the job in as little as half an hour.
In crash testing, the Endurance(TM) scored well in all three areas. Front and side-impact ratings reflected a five, whereas the rollover testing reflected a four. With these ratings, the Endurance(TM) lives up to Lordstown Motors Corp.’s claim of creating the safest electric work truck. The vehicle’s advanced driver assistance systems (ADAS) include lane departure warning (LDW), automatic emergency braking (AEB) and rear cross traffic alert. Software updates are completed over the air (OTA), accompanied by OTA real-time fault monitoring.
The towing capacity for the Endurance(TM) is advertised at 7,500 lbs. The peak horsepower output is marketed as 600 hp. Its speed is governed with software, allowing a maximum of 80 mph.
Merger, Nasdaq Listing Plans
In early August 2020, Lordstown Motors agreed to merge with special purpose acquisition company DiamondPeak Holdings (NASDAQ: DPHC). The merger is expected to close in the fourth quarter of 2020. Once the merger is final, the resulting entity will be listed on the Nasdaq Capital Market under ticker symbol ‘RIDE’.
Notably, Workhorse Group Inc. (NASDAQ: WKHS) currently owns a 10% anti-dilutive stake in Lordstown Motors Corp.
The merger itself is expected to raise $675 million for the company, with an enterprise value of $1.6 billion. These numbers include a PIPE (private investment in public equity) deal for $500 million. General Motors (NYSE: GM) is expected to invest $75 million in the PIPE deal. Once all debt costs are repaid, Lordstown Motors will receive an estimated $675 million, including $280 million that DiamondPeak Holdings acquired during its initial public offering.
The merger and resulting investments are expected to drive the development and commercialization of the Endurance(TM). Presently, Lordstown Motors has roughly 27,000 orders for the electric pickup truck, representing potential revenue of $1.4 billion.
“Since its unveiling just over a month ago, the Endurance has been met with enthusiastic support, and to date, we have secured $1.4 billion of pre-orders,” Lordstown Motors Founder and CEO Steve Burns said in a statement. “Our platform is rooted in sustainability, and the entire Lordstown team is committed to ensuring we contribute to a healthier planet for generations to come.”
Lordstown Motors Corp. has an executive team comprised of professionals from automotive leaders, such as as Tesla, General Motors, Toyota, Volkswagon, Hyundai and more.
Steve Burns is the Founder and CEO of Lordstown Motors Corp. Before his role with Lordstown Motors, Burns was the Founder and CEO of Workhorse Group. During his time with Workhorse, he led a team that produced groundbreaking electric mobility models such as NGen(TM) and the Horsefly(TM). Burns has always had a calling for introducing successful tech startups, and he has founded, grown and sold several companies. With technology and innovation in mind, he has also been credited with developing a vehicle suspension parameter measurement machine in use by the Goodyear Tire and Rubber Company.
John LaFleur has the role of Chief Operating Officer for the company. Before taking his position at Lordstown Motors, LaFleur was the Vice President of Vehicle Programs for Workhorse Group. He attended the University of Cincinnati from 1979 to 1984, where he obtained a bachelor of science in industrial design.
Julio Rodriguez also comes to Lordstown Motors from Workhorse Group. He is currently the Chief Financial Officer for the Lordstown headquarters and manufacturing plant. While at Workhorse, Rodriguez was the firm’s Chief Information Officer and Chief Financial Officer. From 1977 to 1981, Rodriguez attended Universidad Catòlica Andrès Bello, where he received a bachelor of science in accounting and finance. He returned from 1982 to 1983 to continue his education and obtain a bachelor of science in business administration and management.
- Lordstown Motors Corp. has developed an electric vehicle with four in-wheel hub motors that will substantially lower maintenance costs for fleet managers.
- The Endurance(TM) model will be the first full-sized electric pickup truck that is designed to serve the fleet industry in the United States.
- Lordstown Motors Group has entered a definitive merger agreement with DiamondPeak Holdings Corp. The resulting company is expected to remain listed on the Nasdaq Capital Market under new ticker symbol ‘RIDE’.
- The business combination places an implied valuation of Lordstown Motors Corp. at $1.6 billion.
- The merger is expected to be accretive for shares of Workhorse Group Inc. due to that company’s 10% equity position in Lordstown Motors Corp.
- Manufacturing of the Endurance(TM) is expected in the second half of 2021, with plans in place to produce 600,000 electric vehicles annually.
- The company has reported over 27,000 reserved units for the Endurance(TM), representing over $1.4 billion of potential revenue, primarily from customers in the fleet industry.