Yahoo Finance Live anchors discuss Lordstown Motors missing on earnings as well as a $170 million investment into the company by Foxconn.
BRIAN SOZZI: Shares of money losing EV maker Lordstown post earnings. The ticker is the second hottest on Yahoo Finance, also being helped by a new investment from Foxconn. Not a great quarter from Lordstown. That just continues the theme from this company. And, Brad, if Lordstown ever reaches scale with its trucks, I will pull off my shoe here, put it on set, and lick the bottom of the sole because I don't see it. I don't get it. I don't get it, Brad. I don't get it.
BRAD SMITH: I'm not going to hold you to that. I won't make you do that.
BRIAN SOZZI: You should because I will absolutely do that. I just don't see how they're going to scale up this Endurance pickup truck against a backdrop of where Ford is crushing it with the F-150 new electric vehicle. Why do we need another electric truck in the market? Look at Rivian. Rivian has been performing abysmally. Why should Endurance even exist? Why-- why-- why is Lordstown even around?
BRAD SMITH: I think what this is more indicative of is the fact that Foxconn clearly wants to have a-- a autonomous-- not autonomous vehicle-- an electric vehicle business. I mean, they now-- as a result of this, they will hold all-- all of Lordstown Motors, the preferred stock there. They have all that, and then they also have about an 18% stake in its common stock as well. And then they're, on top of this, going to have the opportunity to designate board members, two of them.
So with that in mind, Foxconn is really going to have a lot of say within Lordstown Motors, which, to your point, has struggled this far to be a formidable competitor, even after their ability to kind of separate themselves from operations of other major automobile manufacturing companies. And so for Lordstown, it's not just an uphill battle. They're at the bottom of the hill trying to figure out just where to get some footing here.
BRIAN SOZZI: Licking my sneakers too much. Is it too much? Too much? They're never reaching scale. I'm trying to prove a point. The point being here is that, really, Lordstown is going to have a lot of challenges getting to where it needs to go.
BRAD SMITH: Yeah, big time.