Lordstown Still Takes a Beating

By Douglas A. McIntyre Published Jan 20, 7:30AM EST

Follow 24/7 Wall St. on Google

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Lordstown Still Takes a Beating — © Lordstown Motors Corp.

Lordstown Motors Corp. (NASDAQ: RIDE) management still believes it can compete in an electric vehicle (EV) world dominated by Tesla. Lordstown also operates in a universe where EVs will flood from every side, given the belief of huge automakers that electric engines are the wave of future. Many global manufacturers already have entered the EV market. Moreover, Tesla has started a price war that will add to its market share but drag down prices among its competitors. (Click here for the least appealing car brands to Americans.)
[in-text-ad]
Lordtown’s stock price has continued its plunge in the past three months. Over that period, it is off by 33%. Shaky investors who have been burned are unlikely to come back. At $1.13, it is a penny stock.
[nativounit]
Lordstown recently announced that it expected slow production rates early this year because of supply chain problems. To be fair, this has been a problem for most car companies. However, others have balance sheets that will allow them to wait out the problem. Lordstown does not.

Lordstown has two headwinds to fight today. The first is that former CEO Steve Burns has been selling shares, contributing to downward pressure.
[wallst_email_signup]
The other headwind is the growing success of the Ford F-150 Lightning. The F-150 is the top-selling vehicle in America, so it has an installed base of millions of current owners.
[recirclink id=1190798]
Investors in companies that are likely to be doomed turn a blind eye to the writing on the wall. Hope overcomes logic. Lordstown is too small, too far behind the curve and too slow to release products to make it to the next level of the EV transformation of the car industry.

About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.