Lordstown Motors is one of the electric vehicle companies that goes public on a special acquisition route.
The company was in the spotlight on Monday with one of its prototype electric trucks on display at the White House.
What happened: A Lordstown Motors Endurance truck was shown on the White House lawn on Monday by President Donald Trump and Lordstown Motors officials.
Trump uses the event to highlight jobs returned to Lordstown, Ohio, after the loss of the former plant owner General Motors (NYSE: GM).
“We have been working on this for a very long time and very hard,” Trump said as he watched the endurance truck.
Why it is important: Lordstown Motors is set to go public and trade on the Nasdaq under the “RIDE” symbol by merging with SPAC DiamoondPeak Holdings Corp. (NASDAQ: DPHC).
The deal is expected to bring in $ 675 million to fund Lordstown Motors, including $ 75 million from General Motors. The existing shareholders will own 50% of the company after the merger. The initial estimate is $ 1.6 billion.
Publicly traded Workhorse Group Inc. (NASDAQ: WKHS) owns 10% of Lordstown Motors through a preliminary transaction. Workhorse will also benefit from the production of the Endurance truck, as it will earn a reward for selling the car.
At Monday’s event, Lordstown Motors CEO Steve Burns said the company hopes to produce 100,000 or more trucks each year at the plant. Lordstown plans to make a number of models, he said.
The Endurance pickup is expected to cost $ 52,500 and up. The truck has a mileage of 250 miles on a single charge and comes with a towing capacity of 7,500 pounds.
The company said it had more than 40,000 bookings for the Endurance truck. That would be $ 2.1 billion in sales for Lordtown Motors.
At the time of the announcement of the merger, the company had pre-orders for $ 1.4 billion.
What next: The Endurance electric pickup is aimed at the merchant navy market. The truck is expected to start production in 2021.
The merger between DiamondPeak and Lordstown Motors is expected to be completed in the fourth quarter.
WKHS, DPHC Price Action: Shares of Workhorse traded up 14.23% to $ 28.14 at Monday’s release.
The stock has grown by over 700% in 2020.
Shares of DiamondPeak Holdings traded up 12.39% to $ 26.85. Shares rose 140% in 2020
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