Why Lordstown Motors Dropped Again Tuesday
Lordstown Motors (NASDAQ: RIDE) continued a decline Tuesday morning that started after the electric vehicle (EV) start-up reported its fourth-quarter and full-year 2022 earnings yesterday. After dropping nearly 10% Monday, the stock was down as much as another 5% Tuesday morning. By 2:20 p.m. EST, shares regained some of today's decline but remained down by 1.2%.
The company has been struggling to get production of its Endurance EV pickup truck ramping up. It recently announced a recall along with the suspension of production and deliveries due to quality problems. Yesterday's announcement confirmed that it only sold three trucks in Q4, generating revenue of just $194,000. Wall Street had expected sales would reach $7 million in the quarterly period. Though there was some positive news, it wasn't enough to overcome the bearish sentiment on the company.
Image source: Lordstown Motors.
Source Fool.com
