Everyone talks about wanting to invest in the next Tesla, and I want to make it clear that LMC (Lordstown Motors Corp) is no Tesla. In fact, this interview with CEO Steve Burns highlights why LMC took a different approach than Tesla:
Burns states: “There are a lot of companies that are trying to out-Tesla Tesla, trying to build a very fast, high-end sedan. Sure, new technology typically hits the luxury market first, but we decided the technology is mature enough, and, especially the way we’re doing it with a super-simple design, we can come out for the middle market right away. Fleets buy on total cost of ownership. Hub motors lend themselves to very quick assembly, there’s a lot fewer parts, and the fleets appreciate that out in the field—there’s less to break. You’re never going to have a U-joint or a drive axle, you don’t have to worry about any of that stuff. That’s a big reason for why we’re using these hub motors. They also turned out to be the best handling and the safest, but it all started with the price point.”
First and foremost, I am not comparing the two companies. Tesla is in a league of their own. But, I always think about all of the bears and shorts that capitalized on the bad press that Tesla got all of those years. Then, 2020 happened, people realized that EVs (Electric Vehicles) are the future, and everything changed in a matter of months. People began to realize that we are seeing the biggest innovation in the automotive industry in over a century. As a result, short-sellers lost $38 billion on $TSLA in 2020 as the stock surged.
I’m not going to let a bunch of FUD (Fear, Uncertainty, Doubt) and bad press from the media deter me from investing in a company I have done my DD (Due Diligence) on. I’m not saying LMC is the next Tesla, but I sure as hell won’t be missing out on the $RIDE bull run. I’m from Ohio, and I know how much LMC means to this community. Whenever a company attempts to do something different and challenges the status quo, there will always be doubters. However, I’m as bullish as I have ever been on the future prospects of $RIDE.