Lordstown Motors Corp. stock fell over 10% on Thursday after the electric-vehicle maker issued a recall for the 19 Endurance electric-pickup trucks in use and halted production and deliveries of future EVs.
Lordstown stock
RIDE,
was on track for the lowest close in six weeks, and the largest one-day percentage decline since Jan. 6, when it dropped more than 14%. The stock traded as low as $1.08, its lowest intraday level since Jan. 13 when it hit $1.03.
The Endurance recall means to “address a specific electrical connection issue that could result in a loss of propulsion while driving,” Lordstown said.
The company also said it’s dealing with performance and quality issues with some Endurance components that have led it to temporarily stop production and customer deliveries since its last production update in January.
“The team is diligently working with suppliers on the root cause analysis of each issue and potential solutions, which in some cases may include part design modifications, retrofits and software updates,” Lordstown said.
The 19 vehicles affected are either in the hands of customers or being used internally by the company. Vehicles waiting for shipment will be retrofitted, Lordstown said.
The company last year sold the factory in Ohio to Taiwan’s Foxconn
2354,
also known as Hon Hai Technology Group, for $230 million. Lordstown had warned in June 2021 it could run out of money.
The deal gave the electric-truck maker a much-needed cash infusion and the Taiwanese electronics contract maker a toehold in commercial EVs.
The two companies also signed a contract manufacturing agreement and announced an EV joint venture to build the Endurance electric pickups. In addition, Lordstown and Foxconn entered a joint venture to co-develop other EV programs, including a new EV platform.
Lordstown stock is down 96% from its closing record of $31.40 hit in September 2020. It has declined 64% in the past 12 months, compared with a decline of around 5.5% for the S&P 500 index.
SPX,
Claudia Assis in San Francisco contributed to this article.
