EV startup Lordstown Motors (RIDE) announced a reverse stock split Tuesday as it attempts to remain listed on the NASDAQ exchange and secure funding to keep the Endurance electric pickup alive.
Lordstown’s journey so far
After going public in 2020 via a SPAC merger under the ticker “RIDE,” Lordstown watched its valuation soar with heightening interest in EV makers.
Shortly after, Lordstown felt the pressure with a disappointing prototype and its CEO and CFO abruptly resigning. With the company falling into disarray, the fate of the Endurance was up in the air.
To make matters worse, Lordstown was running low on cash and had warned it would need funding several times to continue operations. Although Taiwanese manufacturing giant Foxconn stepped in, injecting several rounds of funds into the EV startup, Foxconn is now looking for a way out.
The news comes after Lordstown received a delisting notice from the NASDAQ in April stating the company has failed to maintain its minimum $1.00 stock price for 30 consecutive trading days.
As a result, Lordstown warned earlier this month that if it didn’t receive funding, “the company will be deprived of critical funding necessary for its operations,” adding it may need to “curtail or cease operations” or potentially face bankruptcy.
With Lordstown’s latest announcement of a reverse stock split, the EV startup is fighting to stay alive.
Lordstown announces 1:15 reverse stock split
According to Lordstown’s most recent press release, the 1:15 reverse stock split will go into effect when the market opens tomorrow, May 24.
For investors, this means for every fifteen shares of RIDE stock you hold, you will now have one. Your account will reflect the changes upon market open tomorrow. No fractional shares will be given. Instead, shareholders will receive cash equal to the fractional share amount.
The reverse stock split was approved by shareholders at its 2023 annual meeting and is “intended to improve the marketability and liquidity of Class A common stock.” In other words, it’s to remain listed on the exchange and attract investors.
Lordstown says if the stock price can remain above $1.00 for ten consecutive trading days, it “may satisfy Foxconn’s (incorrect) interpretation of the closing condition.” The company remains open but notes no agreement currently exists, and Lordstown cannot predict whether an agreement will be reached in the future.
Since starting production, Lordstown has built 56 Endurance vehicles, delivering 18 to customers. Given the dispute with Foxconn, Lordstown is taking “aggressive actions to reduce costs and preserve liquidity.” Foxconn had $165 million in cash and equivalents as of April 30, 2023, down $11 million from the end of Q1.
Lordstown’s stock is down over 10% in Tuesday’s trading session as investors take in the news.
Electrek’s Take
Lordstown is essentially throwing a hail mary at this point, hoping to resolve the dispute with Foxconn and remain listed on the NASDAQ exchange through a reverse stock split.
Although the stock split will boost the share price, there is no guarantee it will remain above the $1.00 price minimum. Investors are seemingly unhappy with the news, with Lordstown’s stock down 10% today to near-all-time lows of around $0.30.
With the fate of the Endurance once again up in the air, Lordstown is doing all it can to free up liquidity and stay in business.
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Executives from TravelCenters America (TA) and BP were joined by local elected officials at a ribbon cutting for the two companies’ first DC fast charging hub on I-95 in Jacksonville, Florida – the first of several such EV charging stations to come online.
Frequent road-trippers are no doubt familiar with TA’s red, white, and blue logo and probably think of the sites as safe, convenient stops in otherwise unfamiliar surroundings. The company hopes those positive associations will carry over as its customers continue to switch from gas to electric at a record pace in 2025 and beyond.
“Today marks a significant milestone in our journey to bring new forms of energy to our customers as we support their changing mobility needs, while leveraging the best of bp and TA,” explains Debi Boffa, CEO of TravelCenters of America. Boffa, however, was quick to – but TA is quick to point out that TA isn’ no’t leaving its ICE customers behind. “While this is significant, to our loyal customers and guests, rest assured TA will continue to provide the same safe and reliable fueling options it has offered for over 50 years, regardless of the type of fuel.”
The charging hub along the I-95 offers 12 DC fast charging ports offering up to 400kW of power for lickety-quick charging. While they’re at the TA, EV drivers can visit restrooms, shop at TA’s convenience store, or eat at fast food chains like Popeyes and Subway. Other TA centers offer wifi and pet-friendly amenities as well – making them ideal partners for BP as the two companies builds out their charging networks.
“As we expand our EV charging network in the US, I am thrilled to unveil our first of many hubs at TA locations,” offers Sujay Sharma, CEO of BP Pulse Americas. “These sites are strategically located across key highway corridors that provide our customers with en route charging when and where they need it most, while offering convenient amenities, like restaurants and restrooms.”
The new e2500-THL and TS electric Ultra Buggies from Toro offer construction and demo crews a carrying capacity of 2500 lbs. (on the TS model), six-and-a-half foot dump height (on the THL), nearly 13 cubic ft. of capacity, and hours of quiet, fume-free operation.
For their open-mindedness, those crews will be rewarded with machines powered by 7 kWh’s worth of Toro HyperCell lithium-ion battery. That’s good enough for up to eight hours of continuous operation, according to Toro – enough for two typical working shifts.
And, thanks to the Toro Ultra Buggies’ narrow, 31.5″ width, they can easily navigate man doors on inside jobs, as well, making them ideal for indoor demolition and construction jobs. A zero-turn radius and auto-return dump mechanism that ensures the tub automatically returns to the proper resting position make things easy for the operator, too.
Toro says that each of its small (for Toro) e2500 Ultra Buggy units can replace as many as five wheelbarrows on a given job site. Pricing is expected to start at about $32,000.
GM has deployed three of its HYDROTEC hydrogen gensets to the Los Angeles area as a way to help generate power for EV drivers and emergency vehicles recovering from the devastating effects of the recent wildfires.
“GM is extending targeted local support to our customers and employees who have been impacted by the California wildfires,” said Duncan Aldred, vice president global commercial growth strategies and operations. “We’re finding ways to help get people back on the road and using our resources to make a difference in the recovery in the weeks and months to come.”
The mobile charging station rollout is part of a broader response to the fires from GM that includes “planned” philanthropic contributions to nonprofits serving affected communities, employee giving campaigns to benefit the American Red Cross Los Angeles region and the California Fire Foundation, and a complimentary subscription to Crisis Assist Services, which enables customers with OnStar-equipped vehicles to get information about the fires, receive routing guidance, and access immediate emergency assistance from an OnStar advisor.
GM also says it’s providing customers with damaged or destroyed GM vehicles assistance toward the purchase or lease of a new GM vehicle, subject to certain terms and conditions, which may include certain qualifications and restrictions. The company will also help cover collision repair deductible costs for damage to GM vehicles incurred from the wildfires – again, subject to certain qualifications and restrictions.
Electrek’s Take
While it’s certainly commendable for GM to take steps in an effort to support wildfire victims, it feels like a company that made more than $19 billion in gross profits in 2023 (and over $20 billion in 2022; 2024 numbers aren’t out yet – but the company did well enough to spend more than $6 billion buying back its own stock) could have done better than announcing “planned” donations and asking its employees to pony up. By my math, GM shareholders could have given each of the 163,000 global employees the company had in 2023 a $36,000 one-time bonus in lieu of those stock buybacks.
That said, how many companies are doing nothing at all? Good on GM for trying, then – here’s hoping others step up, too.