Key points:
- Lordstown Motors stock jumped over 20% today, with no company specific news
- With the stock sitting at a sizeable discount, investors might be starting to pay attention
- Pre-production of the Endurance pick-up is underway, with deliveries expected in H2
One of 2021’s hyped EV IPO’s, Lordstown Motors (NASDAQ: RIDE) started public trading at the beginning of February last year. Like many EV trading debut’s, the company saw a brief upside, but RIDE stock began to drop just 10 days after its public listing; the short-lived surge has now given way to a substantial downside, with the stock sitting 88% lower than its debut price.
Today, Lordstown Motors gained around 19% in a surprise turn of events. It appears there is no company-specific news stoking the embers of the falling stock, so there must be other macroeconomic factors at play here. Lordstown, like many other fledgling EV company’s, is struggling to meet ambitious demand targets, however, the company is claiming that the Lordstown Endurance fully electric pick-up is fully underway, rolling out of assembly and into pre-production environments.
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Lordstown seemed like a bit of a long shot for fundamentalist investors, yet the company’s partnership with Taiwanese giant Foxconn substantially bolsters the truck maker’s ambitious production targets; with Foxconn boasting a strong fundamental backbone – something that many EV makers appear to be somewhat lacking.
It seems a little peculiar to see Lordstown stock surge without direct company news, but perhaps investors are looking forward to the second half of 2022; when the Endurance might finally be delivered. As stock sits so far below its debut price, the company might appear appealing on a discounted entry, tempting investors before the price takes off again when a delivery date approaches.