By on August 3, 2020

Lordstown Motors

The question of how fledgling EV maker Lordstown Motors plans to fund production of the Endurance pickup has been answered. On Monday, the owner of GM’s former Lordstown Assembly plant announced a merger with a blank-check company, with a cash-raising NASDAQ listing as its goal.

Lordstown Motors plans to finalize the merger with DiamondPeak Holdings Corp., which is already listed on the NASDAQ, by the fourth quarter of this year — after which the combined entity will carry the symbol “RIDE.”

With the merged companies valued at $1.6 billion, Lordstown expects to gain $675 million in gross proceeds from the deal. That’s money that’ll be put to use in a hurry, readying the Endurance for production in the second half of 2021, as well as funding concurrent production of the truck’s hub motors.

Lordstown says it has 27,000 pre-orders for the truck — a figure worth about $1.4 billion when translated into actual sales.

“We are thrilled with the opportunity to build Lordstown Motors into a top-tier electric truck company that is highly differentiated from the competition,” said Lordstown Motors CEO Steve Burns in a statement. “We are uniquely positioned to be a leader in the industry, with our first vehicle, the revolutionary Lordstown Endurance. Our all-electric full-size pickup truck delivers the equivalent of 75 miles per gallon and has been systematically engineered and competitively priced specifically for the large commercial fleet market, which includes companies in manufacturing, contracting, utilities, transportation and delivery, and agriculture, among others.”

The company’s aim, as Burns suggests, is to leave the high-zoot retail EV pickup game to the big players, focusing instead on an affordable alternative for fleet buyers. Simplicity will be key to keeping the vehicle’s price low and buyers interested. Burns said the model’s “streamlined and simplified design positions the Endurance to be one of the simplest and most cost effective vehicles on U.S. roads.”

We got our first glimpse of the Endurance in late June; since then, it seems the model’s ambitious production timeline has caught up to the company’s financial situation.

Mergers with special purpose acquisition companies are all the rage these days among wannabe EV makers, and with good reason. Lofty electric promises seem to send Wall Street into a explosion of euphoria that defies all logic. Look at the sky-high valuations of Tesla and would-be rival Nikola for proof. Noticing this, Fisker hopped on the SPAC bandwagon early last month to fund the production of its own electric crossover.

Now it’s Lordstown’s turn.

[Images: Lordstown Motors]

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8 Comments on “Cash Incoming: Lordstown Motors to Merge, Go Public...”

  • avatar

    I think it’s a great play to go for fleet sales and try to maintain a simple, value driven model, but it seems odd that they’d let that black swoop body trim bisect value real estate on the bedside and tailgate, where companies would likely want advertising graphics applied.

    I’d think they’d want to promote some flatter planed surfaces as a nod to their dedication to the fleet market, and then let your ‘show truck’ models have examples of fleet graphics or even just generic strip kits, etc.

  • avatar

    Well, dang. It was fun while it lasted. I’m ready to call for the Deathwatch party to start, as a former resident of the Valley I’ve seen these kinds of things happen before. Someone gets a sweet deal on some land or buildings, promotes some “gotta have it” product that they swear they will produce there… And then something happens; a merger, a change in the market, some other bullsh!t excuse…

    Within a year, we’ll see if Lordstown Motors exists; we’ll see if they pull a “Rivian” and move the money and/or brains of the operation out west or even further away. Way away from prying eyes…

    That will be the first sign. These shysters don’t want to live in the cold, cloudy midwest… There will be various and sundry delays and design changes that end up delaying the product further. Until it blows away in the wind, just like an Elio. I’ve gone from being cautiously optimistic to full on Deatwatch 2010 mode.

    I hate to be so pessimistic, but having grown up in that part of Northeast Ohio, you learn to deal with this kind of thing. Another fly by night willing to take taxpayer money and run far, far away with it.

    • 0 avatar

      Crap. This should have read: full on Deathwatch 2020 mode.

      Ah well. That’s what I get for trying to type quickly.

    • 0 avatar

      I guess you haven’t heard that “Voltage Valley” is in the making with allot growth the last 12-months or so?

      • 0 avatar

        I’ll be honest, I haven’t been home in the last year. Usually, I’m with you Norm, but I don’t know about this one. There was a very good story with Vox? BBC? about how many times the Mahoning Valley got hosed by folks with a good line and easy access to taxpayer money.

        OTOH, I would be thrilled to be proven wrong.

  • avatar
    SCE to AUX

    “an explosion of euphoria that defies all logic”

    Tesla: Produces actual product, 1 million+ so far, but no trucks yet.
    Nikola: Produces nothing, and is still hitched to the hydrogen Titanic.
    Fisker: Produces nothing; failed once before.
    Lordstown: Produces nothing.
    Rivian: Produces nothing; its newest hires may have stolen Tesla IP in their possession.
    Ford/GM: Very tentative steps to build electric trucks. Since they don’t even need them, commitment will be lukewarm.

    Everybody is riding Tesla’s coattails now, but few will succeed.

    • 0 avatar

      Cadillac’s EV is to announced this week as GM rolls out it’s EV future.

      The GM/Chem factory right in Lordstown Motors backyard will supply EV platforms to Honda.

      • 0 avatar
        SCE to AUX

        They’re going into that together because they both know neither has the volume or the interest to compete with Tesla in any segment of the EV market.

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