Shares of Lordstown Motors (RIDE -1.43%) got a boost last week on some welcome news, but the stock has now given back those gains and more. Today, Lordstown shares were lower by 7.2% as of 3:28 p.m. ET.
Lordstown has been struggling to conserve cash and get its production off the ground. When word came last week that production had started for its Endurance electric pickup truck, the stock popped double digits. But the stock has been sliding ever since. Including today's drop, Lordstown shares are down 15% since last Wednesday's spike.
Lordstown has had a troubling last year. In an effort to preserve cash and move to the production phase of its development, the company sold its manufacturing facility to electronics manufacturer Foxconn and entered into an agreement for Foxconn to be the producer of Lordstown's Endurance electric pickup truck.
Even reaching the milestone of initial production doesn't get the company into winning financial shape, though. Investors likely realized that and took some profits after the gains from the news.
Lordstown expects sales of the Endurance to begin in the fourth quarter, but that is still contingent on further testing and certification. The company plans to end the third quarter with about $195 million in cash thanks largely to the factory sale.
Lordstown knows that's not sufficient, though. It said it plans to continue to look at alternatives to raise additional capital and possibly enter into other strategic partnerships. For investors wanting exposure to speculative names in the growing EV sector, there are better-positioned companies than Lordstown, at least for now.