RIDE - Why Lordstown Motors Soared 32.7% in March
Shares of Lordstown Motors (NASDAQ: RIDE) popped 32.7% last month, according to S&P Global Market Intelligence . The electric vehicle start-up posted a disappointing earnings report at the end of February, which caused the stock to drop in the first week of March. However, with the broad recovery in growth stocks and a slight resurgence in meme stocks, Lordstown stock soared in the last few weeks of the month.
On Feb. 28, Lordstown released its fourth-quarter and full-year 2021 financial results. The company has not yet delivered a vehicle to customers, so it has zero revenue. It also burned over $600 million in 2021, and only has $244 million in cash on hand. A combination of high cash burn and a small cash balance is usually not a recipe for success.
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Why Lordstown Motors Soared 32.7% in March