Electric vehicle (EV) manufacturer Lordstown Motors has completed its reverse merger with DiamondPeak Holdings Corp., a special purpose acquisition company, bringing in an additional $675 million to scale up production of its Endurance pickup truck.
The NASDAQ ticker changed from DPHC to RIDE on Oct. 25. The business combination was approved by DPHC stockholders in a special meeting held on Oct. 22.
“We are proud of this momentous occasion. Electrification of the automotive industry is at an inflection point, and this transaction helps us play our part in this transformation,” said Steve Burns, founder and CEO of Lordstown Motors. “At Lordstown, we have built a differentiated company, and we look forward to combining our EV startup culture with the infrastructure and assets we already have in place in order to successfully achieve our production milestones.”
Lordstown Motors, along with U.S. Vice President Mike Pence, revealed the Endurance prototype in June 2020 at the former General Motors Assembly Plant in Lordstown, Ohio, where commercial production is expected to start in the second half of 2021. The company has received 40,000 pre-orders for the vehicle.
“We have a near production-ready plant and approximately $675 million in proceeds from this transaction, which is more than enough funding to get us through initial production,” Burns noted.
The Endurance’s powertrain comprises four in-wheel hub motors, which the company believes will deliver “superior performance, efficiency, and safety, while providing a significant reduction in total cost of ownership for commercial fleet owners.”
With only those four moving parts and no internal combustion engine to service, reduced maintenance cost is expected to be a major driver of that lower TCO.
The Endurance was designed with fleets in mind and will reportedly have a 250-mile range, 600 HP, and 7,500-lb. towing capacity. An onboard power export provides electricity to run power tools and other equipment. The five-seat truck is expected to cost $52,500, with incentives available to knock off an additional $7,500.
Another part of the deal included $500 million fully committed in private investment in public equity (PIPE), with $75 million coming from GM, which included in mind contributions such as tooling left in the 6.2 million-square-foot plant.
“We are thrilled about the successful execution of this merger, which included a PIPE that is backed by General Motors and several long-term institutional investors, and we congratulate Lordstown on achieving this key milestone,” commented David Hamamoto, chairman and CEO of DiamondPeak Holdings Corp. “We look forward to our long-term partnership with Steve and the entire Lordstown team as they progress towards being first to market with an electric pickup truck for commercial fleets.”
