Electric-truck maker Lordstown Motors is becoming a publicly traded company in a deal that will add $675 million to its coffers and boost its valuation to $1.6 billion.
This transaction includes a $500 million fully committed private investment in public equity (PIPE), which includes $75 million of investments by General Motors, Lordstown Motors said.
The company, which bought GM's former massive Lordstown Assembly plant in Ohio last year, said it is merging with DiamondPeak Holdings Corp. DiamondPeak is a special purpose acquisition company and this merger will result in Lordstown Motors becoming a publicly listed company.
Burns said he will start hiring 600 workers next year to build the first 20,000 Endurance pickups.
Then, starting in 2022, Burns will hire more people to build other all-electric vehicles, such as SUVs and a midsize pickup.
“We didn’t buy a mass volume plant like this and not plan to fill it up," Burns said. "This is a gem of a building built for volume manufacturing."
Burns expects to employ 4,000 to 5,000 people in the plant in the near future based on demand for electric vehicles, adding, "We think the electric pickup is the new normal.”
GM stated that the plant could only build compact vehicles from a realistic financial standpoint. Now full size electric pickup trucks will soon be produced.
Interesting that GM though differently. GM stated that the plant could only build compact vehicles from a realistic financial standpoint. Now full size electric pickup trucks will soon be produced. What gives?
By GM spinning out Lordstown to a new entity, the clock is reset on the 200K EV counter. So Lordstown trucks get a 7500 incentive for 200K vehicles. GM I thought had used up all of theirs. This incentive helps make the plant economically viable. 1.5B more viable.
1. Person who hates FWD, anything but V8, buys a pickup truck for $50K.
for x = "Number of companies that think they have the next vehicle everyone wants and will be new normal"; do
2. GM takes profit and puts some of it in "investments" (after giving some big bonuses and some to their own R&D).
3a. If (GM has $500M in the investment pot) then it gives it to next company on the list.
3b. else wait until GM has $500M in the investment pot made possible by the exorbitant margins the American consumer is willing to pay.
done
5. GM makes a ton of money without doing anything other than making an investment.
Seriously, even Bob Lutz estimated that GM was losing around$15K on every Volt sold
EV Spark and Bolt were barely more than compliance vehicles.
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