Crippled Lordstown Motors Corp. (NASDAQ: RIDE) recalled some of its vehicles. This could end its run as a small, once-promising electric vehicle (EV) maker. The Wall Street Journal reported, “The company said it issued the voluntary recall to address an electrical-connection issue that could lead to a loss of propulsion while driving.” Lordstown said it only expected to deliver 22 of its Endurance pickups last year. That left it miles behind its competition. (Click here for the 13 biggest electric vehicle business failures in American history.)
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Lordstown Motors Chief Executive Edward Hightower offered a poor excuse, “We remain committed to doing the right thing by our customers and to resolve potential issues before resuming production and customer shipments.” Under the circumstances, what else could have been the right thing?
Colleen Robar, a Lordstown employee, was offered up as the person to answer questions. No one has been hurt by the problem that has caused the recall. Hightower was not around to take that heat.
Lordstown’s news release section is littered with unimportant information. Investors can dig for earnings. The company lost $158 million in the most recently reported quarter against no revenue. Likely, fourth-quarter revenue will not look much better.
Lordstown’s penny stock status speaks volumes about its trouble. It barely trades above $1. During the past year, some unfortunate gamblers bought it at $3.79.
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