Workhorse Reports $ 52 Million Loss on Lordstown Motors Stock Investment

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Workhorse Group Inc. posted a loss of $ 52 million after selling much of its investment in ailing electric pickup truck maker Lordstown Motors Corp., according to a company filed Monday.

WKHS workhorse,
-0.61%,
which manufactures electric delivery vans and “last mile” utility vehicles and is based in Cincinnati, said in its 10Q filing that it sold 11.9 million shares of Lordstown, or 72.1% of its stake, between on July 1 and August 6 at an average price of $ 6.67 per share.

While the company received a net amount of $ 78.8 million from the sale of shares, it also recorded a loss of $ 52.1 million.

Earlier Monday, Workhorse reported second quarter sales that were well below expectations as it delivered 14 of its trucks in the second quarter, up from one in the second quarter of 2020. The company’s sales reached 1.20 million. dollars compared to $ 91,942 a year ago, while the average estimate of the six analysts surveyed by FactSet was $ 5.4 million.

The stock fell in the hours leading up to the stock market, but rebounded by midday. Workhorse stocks have lost 48% this year, in contrast to the 18% gains in the S&P 500 Index. SPX

Between December 2020 and June, Workhorse held approximately 16.5 million shares of Lordstown RIDE,
-2.53%,
said the workaholic. This investment was valued at $ 182.3 million in June and $ 330.6 million in December.

Lordstown shares have lost 71% this year and more than 50% in the past 12 months.

The Justice Department has reportedly launched an investigation into the company’s transactions and the electric truck maker has disclosed an SEC investigation.

Lordstown recently added a “going concern” warning to regulatory records, following the departure of key executives and doubts about its order book, the company clarifying that orders are not binding.


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