Fourth quarter revenue is expected to be approximately $4 million on sales of 31 vehicles and powertrain units, significantly lower than the expected range of $13 million to $18 million on sales of 100 to 130 units, primarily due to battery supply issues, demand shifting to 2023 as a result of the impact and timing of the new incentive programs starting in 2023, and fast-rising interest rates. Lightning lost significant sales volume during the fourth quarter because Romeo Power Systems, Inc. (a subsidiary of Nikola Corporation) unexpectedly notified Lightning that it would not honor its commitments to supply battery packs, or to provide further service or support, under its long-term supply agreement with Lightning. While Lightning had designed-out Romeo batteries for its newer vehicle platforms, Romeo’s abrupt action prevented Lightning from being able to ship vehicles and powertrains built on prior platforms, which Lightning is phasing out in 2023, to be replaced with General Motors and Lightning’s eChassis platforms.
Published first on TheFly
See Insiders’ Hot Stocks on TipRanks >>
Read More on ZEV: