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RIDE - Lordstown Motors News Story

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Sector
Consumer Cyclicals
Size
Mid Cap
Market Cap £1.24bn
Enterprise Value £785.9m
Revenue £n/a
Position in Universe 2360th / 6852

UPDATE 1-Lordstown Motors in advanced talks for U.S. retooling loan for EV truck factory

Wed 13th January, 2021 5:20pm
(Adds stock price)
    By David Shepardson
    WASHINGTON, Jan 13 (Reuters) - Startup Lordstown Motors Corp
 RIDE.O  said Wednesday it is in advanced talks with the U.S.
Energy Department seeking a government loan from a program to
help pay for the costs of retooling a factory to build electric
trucks.
    Lordstown chief executive Steve Burns in January 2020 told
Reuters the company was pursuing a $200 million loan from the
program for a former General Motors  GM.N  factory in northeast
Ohio it acquired in 2019.
    Lordstown shares rose 5.3% on Wednesday after Reuters
reported the talks.
    Burns told Reuters Tuesday the loan would help "us make more
(vehicles) once we start" and "pull future vehicles forward a
little bit." The company's production plan does not require the
government loan, but Burns said the loan "puts things on
steroids."
    Burns declined to disclose the precise loan amount sought.
"I think you should think in terms of - this is the same loan
that Tesla got " Burns said.
    In 2010, Tesla received a $465 million loan from the Energy
Department's Advanced Technology Vehicles Manufacturing program,
which also awarded larger loans to Ford Motor Co  F.N  and
Nissan Motor Co  7201.T  to retool factories, but has not funded
any new loans since 2011.
    Nissan and Tesla repaid their loans. Ford is scheduled to
repay the remainder of its loan by June 2022.
    The Energy Department did not respond to a request for
comment.
    A spokesman for Lordstown said the company applied in May.
    "This is fairly late stage and they don't go into this level
of diligence unless we are a good candidate," Burns said, saying
it would not get finalised before President-elect Joe Biden
takes office on Jan. 20.
    Biden is a strong advocate of electric vehicles.
    Burns reiterated Lordstown is on track to begin building
electric pickups in September. 
    Lordstown plans to pit its Endurance EV pickup against
competitors from other newcomers such as Rivian and Nikola, as
well as GM, Ford and Tesla.
    Lordstown said Monday it has received more than 100,000
non-binding production reservations from commercial fleets for
its EV truck.

 (Reporting by David Shepardson. Editing by Gerry Doyle, Kirsten
Donovan)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))
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