Lordstown Motors Share Price Forecast March 2022 – Time to Buy RIDE?
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Shares of American electric vehicle automaker Lordstown Motors (NASDAQ: RIDE) are in the red today, after closing at $2.57 as of February 28th (19:59 EST). Lordstown Motors shares fell as much as 19% in early trading on Monday. Investors aren’t happy with the company’s fourth-quarter and full-year 2021 financial update. However, the automaker is still on track to begin commercial production of its Endurance pickup truck.
Lordstown Motors – Technical Analysis
The financial statement from Lordstown Motors indicates a market cap of $494.033 million with total assets worth $623.888 million.
Moving averages for Lordstown Motors Exponential Moving Average (10)(3.02), Simple Moving Average (10)(3.12), Exponential Moving Average (20)(3.04), Simple Moving Average (20)( 3.06) and Exponential Moving Average (30)(3.11) are indicating a sell action. On the other hand, oscillators such as Relative Strength Index (14)(39.18), Stochastic %K (14, 3, 3)(45.26), Commodity Channel Index (20)(−208.59) and Average Directional Index (14)(18.56) are neutral.
67% of all retail investor accounts lose money when trading CFDs with this provider
Recent Developments
Lordstown Motors was founded by Steve Burns in 2018. The automaker bought the licensing rights to the intellectual property of the Workhorse W-15 pickup truck from Workhorse Group for $12 million. It debuted on NASDAQ after performing a reverse merger with special-purpose acquisition company DiamondPeak Holdings on October 23rd, 2020.
Lordstown Motors went through a tumultuous last year after its former CEO Steve Burns overpromised investors on customer interest and its production timeline. After Burns resigned in June 2021, The automaker formed an agreement Foxconn to take over its facility and produce the Endurance trucks. The automaker replaced Burns with veteran automobile executive Daniel Ninivaggi, former CEO of Icahn Enterprises. The company is still steadfast on beginning production in the third quarter of 2022. However, it will only produce up to 3000 trucks by 2023. The automaker plans to produce 500 trucks this year and will ramp up to another 2500 next year. Lordstown Motors also announced that it’s seeking additional capital to fund the commercial launch and operating plan for the trucks.
In the last year, Lordstown Motors has raised additional capital, push back its production plans, replace its CEO and CFO and change its strategy. As a result, Lordstown Motors shares have decreased by more than 87% in a year. Investors got some positive metrics from the company’s fourth-quarter and full-year 2021 financial report. It achieved a cash balance of $244 million, which has beaten management expectations.
Should You Buy RIDE Shares?
Investors might want to think twice before buying Lordstown Motors shares. If we take a close look into the company’s quarterly report, the plans for the Endurance truck launch isn’t really impressive. To compare, Lucid Group, which is one of its competitors started production late in 2021. Lucid now expects to produce another 20,000 vehicles in 2022. This is also one of the reasons why Lordstown Motors has raised even more capital to fund its operation.
With the deal to sell a portion of its manufacturing plant and contract production of the Endurance to Foxconn, Lordstown Motors may have salvaged its future. It is still finalising the deal and expects to expand the deal later on.
Currently, Lordstown Motors has a market cap that is below $500 million. This suggests that all the bad news may already be priced into the shares. But investors would be likely better off investing in other companies as Lordstown expects only a moderate amount of revenue.
Buy RIDE Stock at eToro from just $50 Now!
