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Lordstown Endurance pickup truck

uujjj2

Member
Aug 11, 2020
430
1,610
San Jose, CA
Lordstown Motors is in some trouble. Exactly how much trouble is unclear. The CEO and CFO have been pushed out. Furthermore, the company's initial IPO money (SPAC/PIPE money) isn't really enough to pay for a full ramp. And because they have a much lower valuation than other EV startups, they are going to have to dilute the stock much more to raise funds, or get a government loan like Tesla had to.

The best case scenario is that lean times make Lordstown a leaner, more cost efficient company. The top-tier California-based EV startups have such rich valuations ($30B+ for Lucid, ~$50B for Rivian) that 100x returns are impossible. In the best case scenario, Lordstown could still create 100x returns.

(Everything in California is overpriced, even stock!)

The worst case scenario is that Lordstown runs out of money and shuts down early in the production ramp. Probably the most likely outcome.

Lordstown stock is basically a lottery ticket. Low odds, but if you win the payout will be massive.
 

mark95476

Active Member
Jun 21, 2020
1,287
691
Bay Area CA
The execs and SPAC that funded RIDE already have and will do fine.

Any retail investor that speculates in RIDE will have a roller-coaster ride and that money will insure that the execs and SPAC get their investments and gains made whole.

Lordstown Motors is in some trouble. Exactly how much trouble is unclear. The CEO and CFO have been pushed out. Furthermore, the company's initial IPO money (SPAC/PIPE money) isn't really enough to pay for a full ramp. And because they have a much lower valuation than other EV startups, they are going to have to dilute the stock much more to raise funds, or get a government loan like Tesla had to.

The best case scenario is that lean times make Lordstown a leaner, more cost efficient company. The top-tier California-based EV startups have such rich valuations ($30B+ for Lucid, ~$50B for Rivian) that 100x returns are impossible. In the best case scenario, Lordstown could still create 100x returns.

(Everything in California is overpriced, even stock!)

The worst case scenario is that Lordstown runs out of money and shuts down early in the production ramp. Probably the most likely outcome.

Lordstown stock is basically a lottery ticket. Low odds, but if you win the payout will be massive.
 

uujjj2

Member
Aug 11, 2020
430
1,610
San Jose, CA
The execs and SPAC that funded RIDE already have and will do fine.

Any retail investor that speculates in RIDE will have a roller-coaster ride and that money will insure that the execs and SPAC get their investments and gains made whole.
So true. The SPAC team, anyway; engineering execs from the company itself may or may not get anything.
 
  • Like
Reactions: mark95476

HVM

Savolainen
Oct 30, 2012
1,103
1,928
Finland
  • Informative
Reactions: mark95476

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