Growing up in the rust belt, the automotive industry dominated the landscape. Everyone I knew worked at a manufacturing plant making some part or another. I have personally worked at several plants. One manufacturing plant I worked at made catalytic converters for Jeeps, and another created engine cradles for Honda Accords. It was labor intensive while working in a really hot plant, but it was good to have a job with decent pay. Manufacturing jobs have been leaving the Midwest and the auto corridor for a quite some time and the once booming towns have been depressed and dilapidated.
Enter the new Lordstown Motors Company (LMC) in Lordstown, Ohio. Lordstown is a soon to be electric truck manufacturer that is partnering with General Motors to create the first full size pickup truck! The company bought the old plant that was used to produce the Chevy Volt and with the GM partnership will revitalize an area of Ohio to become Voltage Valley. GM also plans to build a massive battery factory next to the LMC plant. I am rooting for this partnership and company to succeed, because, not only is the product awesome, but it benefits my home state, OH-IO!
LMC has had some negative publicity when a hedge fund released a report criticizing the number of preorders for the new truck. Hindenburg Research is a short seller that capitalizes on the down fall of companies for a profit. Although, they did have a point that pre-orders are non-binding and customers can cancel the orders whenever they want. Tesla has done the same thing with their new Cyber Truck that can be preordered for $100 deposit. LMC copied their model, but is now in hot water with the SEC. I believe Lordstown Motors has a more appealing truck than Tesla, but building EV’s is not an easy feat. Tesla struggled for years to make the Model 3 as available as it is today.
I like the stock and I like the company. I purchased several call options right before the Hindenburg report came out and the stock plummeted from roughly 18 dollars a share to a little under $12 today. I took a hit early, but I still have some time before the expiration date! I plan to purchase actual shares in the company because I believe in their mission and the location of skilled auto workers in Ohio! How do you feel about this company? Do you believe it could help revitalize American manufacturing? Would you buy the stock?