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Lordstown Slumps as Morgan Stanley Sees Stock at $2 By Investing.com

Lordstown Slumps as Morgan Stanley Sees Stock at $2 © Reuters

By Dhirendra Tripathi

Investing.com – Lordstown stock (NASDAQ:RIDE) plunged more than 8% to touch Tuesday’s low of $5.20 after Morgan Stanley (NYSE:MS) said the stock could go down to as little as $2.

The stock is already well below its year’s high of $31.55.

Morgan Stanley analyst Adam Jonas’ previous target for the stock was $8 with an equal weight rating, according to reports. He is now underweight on the stock.

Jonas’ pessimism focuses on the terms of the company’s deal with Foxconn that the analyst feels leaves little for the EV-maker’s shareholders.

Lordstown is selling its Ohio plant for $230 million to the iPhone-maker which now has ambitions to make electric vehicles. The firm had estimated the sale to fetch it $1.3 billion, more than five-times the final value.

The two companies jointly plan to make electric vehicles at the plant.  

As per reports, the analyst believes the firm’s proposed full-size electric pick-up truck, Endurance, already several months behind schedule, may not yet be commercially viable.