As the saying goes, all good things are worth the wait. After much anticipation (and some skepticism) the Taiwanese electronics manufacturer, Foxconn, has finally begun production of Lordstown Motors’s electric pickup truck.
Notably, this is Foxconn’s first venture into the world of EVs, as the company formerly made a name for itself by manufacturing consumer electronics. Lordstown, on the other hand, is an original equipment manufacturer (“OEM”) of electric light duty vehicles located in Lordstown, Ohio, which went public via a special purpose acquisition (SPAC) merger in 2020. Following a bail-out from an investment firm which agreed to purchase US$400 million worth of Lordstown shares over a three-year period, the company sold it’s Lordstown, Ohio factory to Foxconn. Foxconn agreed to make Lordstown’s EVs for it, but the company will also reportedly use the Ohio factory to produce EVs for Fisker.
Amidst all these changes, many consumers and industry experts have begun to wonder if Lordstown’s Endurance EV pickup truck would ever become a reality. Fortunately, Lordstown revealed in a press release that two commercial release production (CRP) Endurance vehicles have officially rolled off the production line. These vehicles are part of the first batch of 500 vehicles the company intends to build, with a commercial delivery goal of 50 units beginning in the fourth quarter. The remainder of the vehicles in the first batch are reportedly slated for delivery in the first half of 2023, if Lordstown can raise more money.
“We will continue to build at a slow rate as we address remaining part pedigree and part availability issues. We expect to increase the speed of production into November and December,” said Edward Hightower, Lordstown CEO and President. “Our homologation and certification processes are proceeding as planned.”
As Lordstown expects to end the quarter and the year with about US$195 million and US$110 million in cash and cash equivalents, the company must rely on Foxconn and other strategic partners to make it to the finish line as originally promised.