'We're In A Race,' Lordstown Motors CEO Tells Cramer
10:43 am, November 18, 2020
Portfolios: First Watchlist
Tickers: $TSLA $F $GM $RIDE
Lordstown Motors (NASDAQ: $RIDE) CEO Steve Burns joined CNBC's Jim Cramer on Tuesday’s “Mad Money” to discuss his company and the electric pickup truck market.
About Lordstown Motors: Cramer called Lordstown Motors a “great American story,” referring to the company bringing a shuttered General Motors Company (NYSE: $GM) plant back to life.
Burns said the relationship with GM started as “a quick asset sale,” but turned into a relationship with financing to help get the plant and production up and running.
“They bring more than money.”
Burns On Electric Pickup Truck Market: Lordstown is focusing on selling to fleets, which meant it had to have a lower price point and focus less on luxury.
“We’re in a race to bring this back to life and come out with the first electric pickup truck in the United States,” Burns said.
The company announced it has 50,000 reservations from fleet customers Tuesday, including Duke Energy and First Energy.
Cramer said the $52,500 price point is aggressive and asked Burns how Lordstown keeps costs low.
Burns said they had to reinvent the drivetrain and are building battery packs themselves in a move similar to Tesla Inc (NASDAQ: $TSLA). The battery pack in the Endurance will be bigger than the biggest Tesla battery, Burns said.
Burns said the top-three selling vehicles in America are pickup trucks, adding that there is room for several electric pickups.
Burns said “nobody else has this lane,” referring to the focus on commercial fleets first. Burns doesn’t consider the Cybertruck a work truck.
Burns also said traditional automotive manufacturers like Ford are conflicted because they don’t want to cannibalize their other vehicles.
RIDE Price Action: Shares of Lordstown Motors were trading 10.57% higher at $27.31 at last check Wednesday.
