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11 COMMENTS

  1. oh boy here we go again. arent you the guy who bought the ‘crap load of 5$ puts” When the stock was around $5.10.

    Man you trying to save your short bags huh!? rofl

  2. Honestly, good write up. It pains me to say this but you have done a pretty good job.

    I bought in early on and have a decent bag because I wanted to believe in American manufacturing because I work in American manufacturing.

    I sincerely don’t want to rant on here about our financial system and the garbage manipulation, but I believe Lordstown screwed up a lot of things and they were also beaten pretty hard on for it by institutions.

    Take my upvote and I hope it goes up a little so I can exit my positions…

  3. Only_Outcome4297

    $200m cash burn per quarter for vehicles which are likely to see production in late ’22? There’s something not right there. I don’t doubt your figures, but I do doubt that $RIDE are managing their cash properly.

    Their major cash burn should fall into 4 areas.

    First is paying for tooling, if it’s not being done through piece price amortisation. You’d expect that to start approximately two and a half years before the expected start of production (SOP) date, with most of it being complete 12 months before SOP

    The second major cash requirement is for validation. The costs of that are mostly stacked at system and vehicle levels. Expect that to need paying around 12 – 18 months before SOP.

    Third, is the factory costs. The deal with foxconn seems to be covering that.

    Fourth is the prototype build costs, needed for validation and regulatory approval. This will be 12 to 18 months before SOP.

    In other words, if they’re still burning $200m a month, 9 months before SOP, what in hells name are they spending the money on?

  4. HauntingNecessary223

    I don’t see zero in the near term, given their agreement involves the ability to raise 380m more through dilution.

    The agreement with Foxconn will reduce overhead but also slow down the start of production, it isn’t expected to be completed before April. It should allow them to ramp up much faster once production has begun though, as it will take the cash burden of increased production out of their hands.

    All of that said, the dilution will almost definitely be necessary given the delayed production. So we’ll be looking at plenty of downward pressure, and a much lower upside given the additional shares.

    Seems like this move should be enough to keep them from going bankrupt (to 0), but also makes them a scary place to park money given the almost certain dilution

  5. Why are we still allowing this microcap?

  6. ZealousidealSecret4

    And I said this company was trash

  7. So what were the beta vehicles for? Did they just make 30 betas, stop, and then plan to build more betas in the fall/winter? If so, why issue these statements? Why not just say ‘we continue to improve and test our beta builds. Better betas are being produced every week etc. Confusing. I liked the company a lot, still want to, but simply got burned too bad.

    “the Lordstown Motors team continues to move forward with its plan to build a limited number of vehicles for testing, validation, verification and regulatory approvals during the balance of 2021 and the first part of 2022.”

  8. This is dumb as hell, you’re gonna blow your account up. Shorting one of the most undervalued stocks. Compare their market cap to their competitors. This Foxconn deal just about guaranteed Lordstown Motors success.

  9. This is well written, thank you.

    Regarding your thoughts on cash, don’t you think that with the sale of the facility, capex will be reduced? Quite significantly?

  10. Bruhlebronjames21

    Wasn’t there talk about it’s bankruptcy a few months back?

  11. HeinzKetchup5775

    Great job! I recall a guy who posted gain p0rn that’s now deleted. To the moon, to the moon.
    It was something like 12000 shares @ $6.91/share.
    He mocked everyone when RIDE was at $9.17

    Hopefully posts like this balance out the noise and remind people fundamentals matter.

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