What’s Happening: Lordstown Motors has encountered performance and quality issues with certain Endurance components, which have led the company to temporarily suspend production and customer deliveries since its last production update in January. The company is actively working with suppliers to analyze the root cause of each issue and develop potential solutions, including part design modifications, retrofits, and software updates.
Why It Matters: Lordstown Motors’ announcement of its fiscal year 2022 financial results is of interest to investors and stakeholders in the EV industry. However, the company’s temporary suspension of production and customer deliveries due to Endurance component issues may significantly impact its operations and reputation.
- Lordstown Motors will release its fiscal year 2022 financial results before the market opens on March 6, 2023.
- The company has temporarily stopped production and customer deliveries of its Endurance vehicle due to performance and quality issues with certain components.
- Lordstown Motors is working with its suppliers to identify the root cause of each issue and develop potential solutions.
- The company has filed paperwork with the National Highway Traffic Safety Administration to voluntarily recall the Endurance to address a specific electrical connection issue that could result in a loss of propulsion while driving.
- The recall will affect 19 vehicles that are either in the hands of customers or being used internally by LMC, and vehicles waiting for shipment and in process at the manufacturing plant will also be retrofitted with the corrective action once components are available.
- Lordstown Motors’ CEO & President, Edward Hightower, stated that the company is committed to resolving potential issues before resuming production and customer shipments.
Bottom Line: Lordstown Motors’ announcement of its fiscal year 2022 financial results and the suspension of production and customer deliveries due to component issues may impact the company’s operations and reputation. Lordstown Motors is working with its suppliers to address the root cause of the issues and has filed a voluntary recall with the NHTSA to address a specific electrical connection issue. The company intends to provide a more detailed update on the status of these matters during its upcoming earnings call.