Lordstown Motors (NASDAQ:RIDE) on Thursday announced it had stopped production of its battery-electric pickup truck, the Endurance, and would voluntarily recall those already sold to address an electrical connection issue that could result in a loss of propulsion while driving.
The recall affects 19 vehicles that are being driven either by customers or by company employees, Lordstown said in a statement and simultaneous filing with the U.S. Securities and Exchange Commission.
Judging from the company’s explanation that it is working with its entire supplier network to address the problem, the potential malfunction may not be as simple as one malfunctioning part.
“While our experienced team has made significant progress in addressing the underlying component and vehicle subsystem issues affecting the Endurance build schedule, we remain committed to doing the right thing by our customers and to resolve potential issues before resuming production and customer shipments,” CEO Edward Hightower said in the statement.
“The team is diligently working with suppliers on the root-cause analysis of each issue and potential solutions, which in some cases may include part design modifications, retrofits, and software updates,” the company said.
“In this regard, LMC has filed paperwork with the National Highway Traffic Safety Administration to voluntarily recall the Endurance to address a specific electrical connection issue that could result in a loss of propulsion while driving. Lordstown is working with its supplier network to implement a corrective action that the company believes will address this issue.”
The company expects to provide a detailed update on the problem during its 2022 earnings call with analysts on March 6, it said.
The company did not begin production of its truck until last fall after a yearlong delay because of supply chain problems. (See Startup EV Makers Inching Toward Profitable Production.)
The company’s share price fell 11.38% on Thursday, closing at $1.09. During the last 52 weeks, the share price has been no higher than $1.47. It was as high as $29.01 on Sept. 14, 2020.
