RIDE - Lordstown Motors skids 8% after halting production due to quality issues

Lordstown Motors Corp. ( NASDAQ: RIDE ) disclosed on Thursday that it has experienced performance and quality issues with certain Endurance components that have led the company to temporarily stop production .

Customer deliveries have been halted since the electric vehicle maker's last production update in January.

Lordstown Motors ( RIDE ) said its 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. Paperwork has been filed 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.

In addition, Lordstown ( RIDE ) is working with its supplier network to implement a corrective action that the company believes will address this issue. The recall action affects 19 vehicles that are either in the hands of customers or being used internally by the company. Vehicles waiting for shipment and vehicles in process at the manufacturing plant will also be retrofitted with the corrective action once components are available.

Lordstown Motors ( RIDE ) intends to provide a more detailed update on the status of the issues on its upcoming earnings call.

Shares of Lordstown Motors ( RIDE ) fell 8.15% in premarket action on Thursday to $1.13.

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