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1
Posted on 3/18/21 at 8:35 am to Ballstein32
Well that interview was an absolute disaster 
Get ready for a rough ride for those long here. Probably best to not follow the daily price for a while
Get ready for a rough ride for those long here. Probably best to not follow the daily price for a while
Posted on 3/18/21 at 9:28 am to skewbs
There's no way this guy remains as CEO. He said this morning he doesn't see how anyone could confuse those letters of interest as orders, and CNBC then immediately cued up a video of him from last year saying that the average order size was 500 trucks and those orders were being signed by CEOs. Cramer then flat out said he "dissembled"...which I had to look up, but it means "lied".
YIKES.
YIKES.
Posted on 3/18/21 at 9:52 am to Chucktown_Badger
quote:
Lordstown Motors Corp (NASDAQ: RIDE) CEO Steve Burns was on CNBC Thursday morning to address recent short-seller allegations of fraud.
What Happened: Commenting on Hindenburg Research's report against Lordstown, CNBC's Phil Lebeau told the electric automaker CEO Steve Burns he came on the network in the past and made references to "serious orders", or reservations. Burns said the company has always made it clear it has collected "non-binding letters of intents" but referred to them as "pre-orders in the real world." As such, the company "always classified them for that" and the company has "a lot of those pre-orders."
"We have pre-orders directly from fleets, we have pre-orders from people that sell to fleets," the CEO said Thursday. Gauging demand is very important for a company like Lordstown that starts to manufacture a new vehicle every six minutes, Burns said. As such, management needs to know one-year in advance how many vehicles will be required to address future demand. "We never said we had orders. We don't have a product yet so by definition you can't have orders,"
@LordstownMotors CEO Steve Burns tells @lebeaucarnews. "I don't think anybody thought we had actual orders. That's just not the nature of this business.
Posted on 3/18/21 at 10:21 am to cgrand
Man, that is a pathetic response. About as close as he can come to conceding that Hindenburg was right about the inflated orders without explicitly admitting it. Makes you wonder what else Hindenburg was right about.
Posted on 3/18/21 at 10:56 am to saltydawg
Side note, nice touch having Steve in the plant with his vest and hardhat in front of machines.
Posted on 3/18/21 at 11:07 am to cgrand
So it sounds like the issue is how they were categorizing and referring to the non-binding letters of intent to purchase they were receiving to gauge demand for the product. It could be misleading in a sense to refer to those as 'pre-orders'. In another sense, it does highlight the potential demand for the product which the company must understand in order to invest a serious sum of capital to manufacture the product.
If the hang up here is the terminology and categorization of the 'pre-orders' then I'll feel a little better. It's still gaming the public a bit.
However I was concerned the issue would be them falsifying or over-inflating the actual numbers being reported which is a much bigger issue and outright fraudulent. As far as I can tell I don't think that's happening... I could be wrong though.
If the hang up here is the terminology and categorization of the 'pre-orders' then I'll feel a little better. It's still gaming the public a bit.
However I was concerned the issue would be them falsifying or over-inflating the actual numbers being reported which is a much bigger issue and outright fraudulent. As far as I can tell I don't think that's happening... I could be wrong though.
Posted on 3/19/21 at 1:37 pm to skewbs
This is troubling.
TheDrive
There also doesnt seem to be much background info on the CEO/founder other than his ties to other startups including Workhorse. What did this guy do before he started these companies?
I was eager to buy some on this dip but this looks sketchy to me now. Hope I'm wrong again and miss another opportunity.
quote:
Hindenburg claims that the bulk of these allocations were placed by consulting firms that Burns paid "$30 per non-binding 'order'" to pump stocks and increase cash flow. Burns admitted that this happened, but he reiterated that the company referred to these as "non-binding production reservations"
TheDrive
There also doesnt seem to be much background info on the CEO/founder other than his ties to other startups including Workhorse. What did this guy do before he started these companies?
I was eager to buy some on this dip but this looks sketchy to me now. Hope I'm wrong again and miss another opportunity.
Posted on 3/19/21 at 2:43 pm to TorchtheFlyingTiger
Just got upgraded to an $18 price target. Addition of 50%
Posted on 3/19/21 at 3:03 pm to SkinnyTestaverde
The current market cap is $2 billion.
The plant alone is worth 2-3 billion dollars. It is the third largest vehicle manufacturing plant in the country.
They will end up bought out for more than that $18 price target.
The plant alone is worth 2-3 billion dollars. It is the third largest vehicle manufacturing plant in the country.
They will end up bought out for more than that $18 price target.
Posted on 3/19/21 at 3:50 pm to tenderfoot tigah
quote:
The plant alone is worth 2-3 billion dollars. It is the third largest vehicle manufacturing plant in the country.
IIRC, they don't really own that factory. GM has them by the balls. I can't remember all the details, but GM loaned lordstown $40-50 mil to buy the plant from GM. In the details of the deal, GM can repurchase it at a set price and they also have the ability to lease out some of the space and land.
ETA: Here's an article on it LINK
I haven't paid much attention to Lordstown since the SPAC rumor/announcement, so maybe this changed when they went public.
This post was edited on 3/19/21 at 3:53 pm
Posted on 3/19/21 at 3:56 pm to tenderfoot tigah
quote:
The plant alone is worth 2-3 billion dollars. It is the third largest vehicle manufacturing plant in the country.
Wow! Thats an impressive ROI considering they bought it from GM for $20M in 2019. Who's gonna pay $2-3 billion for that plant?
Posted on 3/19/21 at 8:09 pm to skewbs
the issue isn’t the number of pre-orders but whether they’re worth anything to the company. Apparently one of the so-called “preorders” for $700 million / 10k cars was made by a one-man company working out of a $1200/month 1 bedroom apt in Houston. Another pre-order for 20 trucks was supposedly made on behalf of an Ohio city but the city said it didn’t know anything about the order.
The pre-orders are no commitment, no money down, so the concern is that none of these pre-orders accurately captures demand for the vehicles
And yes. A plant they bought from GM for like $40 mill after GM leased them the money to buy it ain’t enough to justify their valuation
The pre-orders are no commitment, no money down, so the concern is that none of these pre-orders accurately captures demand for the vehicles
And yes. A plant they bought from GM for like $40 mill after GM leased them the money to buy it ain’t enough to justify their valuation
Posted on 3/19/21 at 9:36 pm to TorchtheFlyingTiger
quote:
Wow! Thats an impressive ROI considering they bought it from GM for $20M in 2019. Who's gonna pay $2-3 billion for that plant?
Lordstown spent $400 million into the facilities making them state of the art. The property is 700 acres.
The facility is capable of 600000 vehicles a year. It's the third largest vehicle manufacturing plant in the country.
GM is building the largest battery plant in the country next door.
Connect the dots...
This post was edited on 3/19/21 at 9:37 pm
Posted on 3/19/21 at 10:46 pm to tenderfoot tigah
GM is clearly tied to them at this point for better or worse. Hell they coulda used them to generate a few billion of free money from a stock offering
This post was edited on 3/19/21 at 10:48 pm
Posted on 4/22/21 at 1:14 pm to SkinnyTestaverde
Need AT to make me feel better about this hunk of shite truck and stock.
Made it almost 40 miles...
I guess my question is, knowing this was a high profile, critical moment for the company, how would you not privately run the truck in a similar environment to make sure it'd be successful? Did they just throw it out there and cross their fingers?
Made it almost 40 miles...
quote:
Lordstown Motors (RIDE) - Get Report fell Monday fell after the electric-truck maker's pickup truck, Endurance, failed to complete a race in Baja, Mexico.
Shares of the Lordstown, Ohio, company at last check were down 9.7% at $9.05.
Official results from organizers of the Score San Felipe 250 show that the Endurance Entry reached 39.8 miles of the 280-mile course. The Endurance has a range of 250 miles, according to Lordstown's website.
I guess my question is, knowing this was a high profile, critical moment for the company, how would you not privately run the truck in a similar environment to make sure it'd be successful? Did they just throw it out there and cross their fingers?
This post was edited on 4/22/21 at 1:18 pm
Posted on 5/20/21 at 8:56 am to Chucktown_Badger
An analyst downgraded the stock and lowered the price target from $18 to $1, how does this happen?
Posted on 5/20/21 at 9:00 am to bass
And I thought this stock had legs ... at one point, not too long ago.
Posted on 5/20/21 at 9:21 am to Chucktown_Badger
quote:I assume that is 39 miles left, which means it went 240 miles. But how can you enter a race knowing you will fall 30 miles short.
Official results from organizers of the Score San Felipe 250 show that the Endurance Entry reached 39.8 miles of the 280-mile course. The Endurance has a range of 250 miles, according to Lordstown's website.
Posted on 5/20/21 at 9:26 am to tigerfoot
Definitely sounds to me like it only went 40 miles. At least people are interpreting it that way. Burns the CEO is a scam artist
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