Lordstown Slides As Analyst Says Sell Following Ford Electric F-150 Reveal

Shares of Lordstown Motors (RIDE) are under pressure on Thursday after Wolfe Research analyst Rod Lache downgraded the stock to Underperform, a Sell-equivalent rating, as he believes Ford's (F) electric F-150 reinforces his view that Lordstown will not be competitive in the commercial electric vehicle pickup space. The analyst argued that Lordstown simply cannot match Ford's announced pricing levels.

ELECTIVE F-150 REVEAL: Ford has revealed that its battery-powered F-150 Lightning will have a starting price of $39,974 when it arrives in showrooms next year, significantly below that of some other electric trucks slated to hit the market, The Wall Street Journal's Mike Colias reported. Other electric pickups expected to go on sale in the next 18 months will come from Tesla (TSLA), GM (GM), and Amazon (AMZN)-backed Rivian.

In an interview on Bloomberg TV, Ford CEO Jim Farley said that the company has 20,000 pre-orders for the F-150 lightning.

Meanwhile, Sunrun (RUN) announced its partnership with Ford to serve as the preferred installer for Ford intelligent backup power, debuting on the all-electric F-150 Lightning. Sunrun will facilitate installation of the 80-amp Ford Charge Station Pro and home integration system. With Ford intelligent backup power, enabled by the available 80-amp Ford Charge Station Pro and home integration system, the F-150 Lightning can serve as a home backup energy source by dispatching power to the home during a power outage event. Through this partnership, customers will also be provided with the opportunity to install a solar and battery system on their home, enabling them to power their household with affordable energy and charge their F-150 Lightning with the power of the sun.

SELL LORDSTOWN: Following the announcement, Wolfe Research analyst Rod Lache downgraded Lordstown Motors to Underperform from Peer Perform with a price target of $1, down from $18. The analyst believes Ford's electric F-150 reinforces his view that Lordstown will not be competitive in the commercial electric vehicle pickup space. Lache, who was already questioning the competitiveness of Lordstown's $52,500 electric pickup truck for fleets, thinks Ford's reveal of $39,900 and $49,900 electric pickups crystalizes his concerns. Ford announced pricing levels that Lordstown simply cannot match, the analyst told investors in a research note.

1 2
View single page >> |

Disclaimer: TheFly's news is intended for informational purposes only and does not claim to be actionable for investment decisions. Read more at  more

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.