Workhorse Group Inc. booked a $52 million loss as it sold off a large chunk of its investment in embattled electric pickup-truck maker Lordstown Motors Corp., according to a company filing Monday.
which makes electric “last mile” delivery vans and utility vehicles and is based in Cincinnati, said in its 10Q filing that it sold 11.9 million shares of Lordstown, or 72.1% of its stake, between July 1 and Aug. 6 at an average price of $6.67 a share.
While the company took in a net $78.8 million from the sale of shares, it also booked a loss of $52.1 million.
Workhorse earlier Monday reported second-quarter sales that were well below expectations as it delivered 14 of its trucks in the second quarter, from one in the second quarter of 2020. The company’s sales rose to $1.20 million from $91,942 a year ago, while the average estimate of the six analysts polled by FactSet was $5.4 million.
The stock fell during the pre-market hours, but has rebounded in midday trading. Workhorse shares have lost 48% this year, contrasting with gains of 18% for the S&P 500 index. SPX
Between December 2020 and June, Workhorse owned about 16.5 million shares of Lordstown
Workhorse said. That investment was valued at $182.3 million in June and $330.6 million in December.
Lordstown shares have lost 71% this year and more than 50% in the past 12 months.
The Justice Department reportedly has launched a probe into the company’s dealings and the electric-truck maker has disclosed a SEC inquiry.
Lordstown recently added a “going concern” warning to regulatory filings, following the departure of key executives and doubts over its order book, with the company clarifying that orders are not binding.