 All right Lordstown Motors two scenarios first one's Rosie second one not so Rosie Check it out. All right. I am making this video because we have an earnings call coming up with Lordstown Motors and This is super critical for the stock for the company for the investors for the stockholders I've worked out two scenarios here that are possible outcomes. I think they're fairly realistic Let me know what you think in the comments But you know Foxconn as always is a major part of this and this whole deal is on a razor's edge Okay, so I'm just gonna say up front. This is an extremely risky endeavor Extremely risky stock But let me just start With what I call the Rosie scenario Here it is right here Rosie Foxconn deal goes through without a hitch and And I say better than 50% chance in my opinion that this is gonna happen Now when I say better than 50% 51% Okay, but I do think the odds of it happening are greater than the odds of it not happening But let's take a look First of all I have down here looks like HR posts are changing from Lordstown Motors to Foxconn. There was a Twitter post on this The same recruiting posts that were for positions for Lordstown are now Relisted as positions with Foxconn. So It implies Confidence the factory will go to Foxconn. I mean Foxconn somebody's confident about this because they've changed the whole recruiting Regime so again Deal goes through without a hitch Okay, so what do we have when that happens? Contract manufacturing endurance starts early. I have April now. There was some breadcrumbs on this We don't know I think the deal will close in April if it closes and I Think as soon as it closes We're gonna start production That's in my opinion. I don't know I Don't see cash is bolstered by the Fox sales income. There's that there's also Other factors They have a mortgage with Foxconn and so forth But we do know that the final payments from the Fox sale are coming in April-ish So there's gonna be You know, I think 50 million Maybe perhaps more than that you can review my last videos on this. I've gone over this in detail my estimation is that Lordstown Will have enough money to start production Just enough Okay, razor's edge as always with Lordstown But again, we've got the deal closing and payments come in with the closing of the deal I Have down here Fox takes more actions to prop up LNC, you know if push comes to shove Fox may make another stock purchase in my opinion, there's some things that could happen Foxconn really wants in Electric vehicles they are Absolutely positively Pivoting their entire corporation to electric vehicles no doubt about it So, you know, would Fox buy more stock? Yeah, would Fox maybe buy some bonds. I don't know. I'm just saying if they had to Now there's another side to this scenario as well We're gonna go through next but if they had to I think they would prop up LMC Because they do want to start Evie manufacturing Now I just want to say one thing Ford isn't gonna go online till next year Silverado isn't gonna go online till a year after that Cyber truck year after that Rivian is I don't know if anybody remembers the Lincoln Continental pickup truck that came out. That's what the Rivian is It's not even a player in this Lordstown is Through a homologation Homolation whatever the hell it is and they are ready to go. They're ready to go That they're the only truck that's really ready to go at this point in time EV fleet truck or consumer truck really Now I have down here There's another part of this Rosie's scenario the ATVM loan goes through for both Fox and Lordstown Motors Schmidt the former president of LMC said they were going for 220 million mill minimal Okay, so I have down here 220 so if they get that loan and By the way Foxconn is also applied for this loan in tandem with Lordstown Motors and Foxconn is an expert at getting these types of loans in the countries. They're working in so Let's say LMC gets 220 million cash infusion from that so you if they do get that and They might get propped up by LMC and they also get that 50 mil or whatever it is the case is their last final payment their payment or two I think there's two payments actually they come in late So and also would would they've got that mortgage Vehicle which I am not certain. I understand that even to this day But Foxconn may even take more actions to prop up LMC so let's say they get the LMC 220 million cash infusion as well so the deal closes they get the cash from The final cash payment payment from the sale Fox pledges support the ATVM loan goes through So we're looking at You know Let's say 300 million. I I think that's enough to start production. I think so At this point the stock surges and If we get up around 10 or 12 dollars a share They can execute the revolving stock credit line They have and trade stock for cash there as well and not incurred debt and still have zero debt on the on the balance sheet So there's all kind of funding that can happen Potentially And I Would just say Well, let's just go into the here's the thing Wood Foxconn absorb LMC I believe I go through this in the next session section would they buy out LMC to stay in business You know Some of these agreements are set up almost in that direction there are poison pills in some of these agreements I think the poison pills are put in more to make sure that this gets through the CIFAS Approval But the thing is Foxconn wants to be a contract manufacturer of electric vehicles Now, I know they've announced their own prototypes. It's all very confused right now But just like and I've mentioned this before they do not their policy is not to compete with their customers Okay, if they bought LMC or absorbed LMC in our house and it became their brand Then they would be competing With potential customers for Chevy whoever else decides to make a electric pickup. I Don't know fuck. I don't know Foxconn wants to do that Maybe they do that would be a total change in their modus operandi For the last, you know, I don't know how many years, you know, you got the Apple iPhone Okay, you don't have the Foxconn phone. Okay, this is what I'm talking about Alam and that okay the stock goes up they use so so in other words they raise a lot of capital This is these dominoes all falls together LMC announces a sedan Okay There's rumors online that somebody went to their facility in Orange County, California and there was a sedan there. I Don't know So Could they announce another product maybe I mean the van their delivery van high top van has the soft dies made not the high hard Production dies, but that's the next iteration there. That's just a capex that they're holding back on But this is this is something that could happen as well a new product could be announced Now I just noticed that and I was watching Auto line and they said They were talking about all fleets by an EVs and this and that Those guys I thought were misrepresenting it because they were saying You know these fleets they they want to buy off a brand manufacturer Well, the thing is they're under pressure to meet environmental goals and none of these other trucks are going to be available. Okay, if These dominoes all fall in line the Lord's time endurance is going to be the only one that's going to be available to buy today But anyway Even going by what they say they they say that a recent survey said only 25 percent of fleets will use a new manufacturer without an established You know dealership network or whatever you want to call it Well if that means that Lord's con can start with 25 percent of the market Good enough I think I think that's a very good start once the vehicles prove themselves They're going to have a year or two before any of these other trucks are even available So I don't think the fleets are going to wait. I think they're gonna and I think the LMC You know already has orders you can see my past videos on this so LMC will be first and take the 25 percent market share of the Unknown manufacturers And then this 25 percent market share will be a profit proof of concept concept sales increase Fox manufacturing Contract manufacturing can handle it and keep the quality up and global global sales start You know the EU first and again, we're gonna have a year ahead of all these other electric pickups You know a lot of these countries are demanding all EV Municipal fleets so forth So people are saying well this truck's too big for the well, you know what maybe it is maybe it isn't maybe You know there if they're demanding EVs If they're demanding Percentage of fleets be EVs and the endurance is the only EV. I think they're gonna take a look at it Okay, I think there's gonna be European sales Asia perhaps China perhaps we know Foxconn has distribution all over the world, but let's just say EU let's just say London or You know miss municipality. I think they're planning on having London be all EV so that's an example and Our next product to launch is the high top van and that can that can be put in production quickly because it uses the same skateboard as the endurance Different dyes, but it has to go through homolog homologation Which should be easier the second time around there also has to be crash testing and so forth, but again, they're all Very experienced at doing that and doing that with this electric vehicle, and I think that whole Processed time should be cut in half really, I think they're gonna announce the SUV the SUV was planned on being the second vehicle after the pickup truck It's on the same frame as the pickup truck again Homologation crash testing they already know how to do it Same frame same battery same drive system different body perfect and Also, I think once they start sales in fleets I think it's not going to be too short after shortly after that that they're gonna they're gonna start consumer sales They're gonna start selling direct to consumers as well Okay, so that's the rosy scenario Basically the role rosy scenario says the deal goes through they they get the ATVM loan They have enough capital OPEX capital to prime the pumps and get things going and They have the support of Foxconn Okay, and then they move on and expand from this take a 25% of the fleet market Use that base as a proof of concept You know be able to spit out Statistics and so forth and I have by the way An article I'm gonna I hope to go over at the end of this presentation where You know Lordstown just tweeted out They're talking about the hub motors. They said The crash testing that the vehicles did the hub motors that were on the trucks that were crash tested They still work and went through the crash testing and they still work I'll tell you I think that's a lot to say about durability right there And you know we can go over the lower cost and blah blah blah how much it's a bit or let's just go through that So that's the rosy scenario that's all You know puppy dogs and whatever sugar cookies, okay, and I think that that has Let's say a 51% chance. I Think a better chance of success than failure But it's a close margin now. Let's just go into the dark and storming and again I Have less than 50% so maybe 49 51, okay Right now LMC stock is falling all-time lows It could you know it could fall It could be forced down. Could it be this list delisted? Let's hope not, you know, could it go over the counter? Let's hope not Okay Anyway as as the stock keeps falling and falling we have a delisting or we have a you know a crisis in the stock price The LMC Fox con deal, you know, there's announcement to deals on hold Then we have the CFA certification This is critical. This is a group of American political organizations deep state kind of stuff that has to approve a foreign manufacturer Basically buying a plant in the United States Let's say that stalls or no decision is made. I'm expecting a decision in April if that stalls That is gonna hold everything up And then I have done and that's really not gonna be good Ride stock falls to a dollar delisted by NASDAQ goes over the counter very bad The endurance start of production is stalled Because of the the CFA is non-approval the Fox con deal is not approved is on hold No announcement on a new new timeline so everything gets frozen like it was right before the the Fox con purchase purchase, okay Of Course at this point LMC isn't gonna be able to raise capital debt junk bonds Maybe at this point and this is something that could happen. I Don't know as I said it has been Fox cons MO Not to compete with potential customers or not to compete with combust Customers the NIH pro platform that they're using by the way is developed by a group of Asian companies It's not a Fox con Platform per se per se Distinction without a difference. I don't know same thing goes for their autonomous driving and their operating user experience System so it's technically not Fox con, but you know, whatever all right, so Fox con could buy ride outright for a dollar share Take away everything Okay, let's say that doesn't happen. Let's say the Fox con deal is killed by CFA's Let's say CFA's gives them a thumbs down There's all kind of poison pills and the agreements Okay One of them is LMC must repay all the funds forwarded by Fox con to them They ain't gonna have that money They're gonna have to find a new buyer for a plant. They can't find a new buyer for the plant okay, so This set of dominoes and this could happen in any order, okay, but I'm just saying if these things happen you know Going concern notice the second going concern notice Q1 2022 I Don't know Like I say LMC is acquired by Fox con for a dollar share or Alternately LSE LMC files bankruptcy. That's it. So this is it. This is another set of Things that could happen and these are some of the factors and I'm not saying this is gonna happen But I do give it a like less than 50% chance of happening excuse me Let's say 49% So as you can see we're on a razor's edge here Everything goes well the gate the ATVM loan They can raise capital the stock price goes up blah blah blah Deal is halved the CIFAS approval doesn't go through All these horrible other things happen When these poison pills go into effect that are in the in the contracts as I said, I think more of a Poison pill for this Than any poison pill to Lordstown in other words, they're saying to the Approving entities in the US government. Look, you don't approve this. It's gonna be on you. You're gonna, you know You're gonna ruin this company my opinion. Maybe I'm wrong Anyway LMC files bankruptcy and and and this also Again portends that Foxconn is gonna buy a Manufacturing a brand and compete with its own client something it doesn't do And it implies a predatory stance by Foxconn and Some people could say, you know, they aren't they aren't a predatory stance because they see that they saw that Foxconn was in trouble. They came in but The other side of that coin is they saw a great opportunity a great technology a Vehicle that's easy to manufacture low-cost to manufacture easy to keep quality up on That's the other side of that coin so but again, we're looking at 51% all good 49% all bad that's how close you are So if you're investing in this company and I am not a financial advisor, this is a case study I say it's a case study about the myth of entrepreneurship in the United States And the reason I say that is you got an entrepreneur here who has been working on electric pickup trucks for You know 15 years whatever it finally gets his time in the Sun and He's an entrepreneur. This is America He goes public he raises money this should this should all happen But it doesn't forces a line against him and I have a video coming up for a tear on this But the point is there's a myth of entrepreneurship in the United States. There's I mean Elon Musk used social media particularly YouTube Which was very newer or newer at the time And that's how he overcame the evil forces, okay? Lordstown a Little later in the game. Anyway Moving on so that I hope I've outlined those two for you It could really go all good and it could really go all bad. We don't know until we get a a You know the earnings call and We're gonna see then what the deal is and And the one thing I forgot to mention here is to at the close of this deal Fox is going to reimburse Lordstown for a percentage of the operating expenses. We don't know how much that's going to be but that's going to be additional Opex cash that they have so Now I'm gonna give you my my opinion on this Not a Not a financial advisor Here it is Foxconn Extreme risk potential outcomes are closed back black box. No information out of Lordstown the main known is Is that Foxconn really wants this to happen and If someone's knocking at the door not the world's largest it's it's the world's largest electronics manufacturer It's the fourth largest technology company in the world. This is what we know for sure They really want this to happen and I don't think so that's that's That's a big force in favor of this happening and I don't think people understand how big Foxconn is and You'd look at these are these are the technologies are auto firms that these are technology firms You got number one you got Apple And you got Samsung then you got alphabet number four is Foxconn Okay After Apple and alphabet Foxconn Samsung Look who Foxconn's ahead of it's ahead of Microsoft Huawei Dell Facebook Sony Hattachi Intel IBM Tencent Panasonic Lenovo HP LG. Okay the point being Foxconn is Big business Okay, and big business Want something big business Usually gets it now are they are they gonna are they gonna do it any way possible? I think they are I think they want My personal opinion, I think they want Lord's time to remain independent Because of them not wanting to compete with their own customers And I think they want to get any of these and they want to do it quickly The CEO of of Foxconn has said this they want to do it yesterday and this endurance is the it is The vehicle right now it is on the edge the markets there As long as the truck is a mongrelated You know if all the stars align This is my opinion on why this is why I give it a 51% chance of Happening our rich Chinese uncle and let me tell you Taiwanese whatever you want to call it doesn't matter. I mean you look at this bigger than Microsoft Bigger than Facebook Facebook's pretty big Okay, and this is but This is a big deal. This is big business. This is international big business. This is a major force in the world and They want this to happen and that's Where I am putting The emphasis on this and you can look at this list. I mean These guys are right up there with the biggest companies in the world Apples number one. I don't know where well you can see these revenues and I don't even think these these revenues are Hampered by the I don't know when this is I think this is 21 revenues But anyway, they aren't even the full revenues for Foxconn, but anyway, that's my presentation on this I'll just leave this right here Great I This is so close We're gonna have to wait for the earnings call If they're not ready to announce This could be a nothing earnings call like the Angela strand call was Before the Foxconn deal where they said nothing Basically just the facts ma'am. They took basically no questions Might be the same thing if the deal isn't closed if the deal is closed. We're gonna know more I just watched Q's views. He did a video on this Q's going a little bearish He's saying if the If the spending doesn't drop below there they're spending 90 million a quarter He's saying if the spending doesn't drop below doesn't cut in half or or more that they're gonna be spiraling down the drain I Again is Q wrong Not really, but Personally, I've done one analysis in the past and I've recently looked at the numbers again my opinion Right on the razor's edge. They're gonna have enough money to start production So, okay, this is a makeshift. This is the next Section on this and Q's views mentioned this today Angela strand who was the interim acting CEO? before Danny in the Avaji was brought in She just got half of her shares There was an inside sale and I watched Q's views on this I Find it. I am bored by these financial things Although in my past experience. I was a headhunter for a while This issue did come up. I It was just it's just Annoying to me to even Consider this kind of I don't consider important. That's there you go. That's why you shouldn't take advice from me Anyway, we got Angela here Correction Lordstown Motors director disposes of stock for tax purposes Update reflects changes related to the end of stock of the trans of the stock transfer the intent The intent of the stock transfer Earlier version of the story erroneously characterized a can transaction as a sale We regret the error Okay Director of Lordstown Motors, which is Angela. I think she did a great job and I think I think she's a Really like her skill set She's in with a new V. She knows where EVs are going. She knows this business in my opinion Director of Lord has disposed of nearly half of her shares and To start up electric manufacturer for tax purposes according to documents filed with the securities exchanging sense okay, so Half her shales have gone were sold Disposed of her shares and start up for tax purposes now. I'm going to try to explain this you guys do your own research on this Was named executive chairwoman file for interim duties of CEO After Burns left disposed of 22,000 shares To satisfy tax tax withholding requirements on January 17th at 311 a share Okay So not a very good price could have done it sooner could have got a better deal Anyway, now listen to this it does not we've met present a sale by the Reporting person according to the SEC Excuse me the shares were withheld by the issuer Which is Lordstown Motors company to satisfy the reporting persons withholding tax obligation So, you know, this is some accounting speak here. Anyway, they weren't sold. They were withheld To satisfy the withholding tax obligation and You know when you're when you're issued stock and and the options Come do and become stock and so forth That's a capital gain and there's taxes due on that that that may be part of it when they vest, you know Also, I don't know how they're Maybe she had some unique income because of her CEO role for a short time. Anyway, the point is The share it does not result represent a sale by the reporting person now Q's view shout out to Q. He says it doesn't matter. You know, it's still a reduction. I I don't know I'm gonna go with I Had mentioned I'd made a comment on one of Q's previous because as I said, I have heard I have heard of this happening Before when I was headhunting this type of thing Cash value of 68,000, you know, that that's not No, I don't want to upgrade. That's not that That matters up a little amount Stand to steal the list and receive five fifty thousand restricted units as part of a compensation package Dan Daniel Levagi, blah, blah, blah, blah, blah, blah Cio Burns cashed out 3.2 main shares. He's got a lot of lawyer bills to pay. I'm not gonna hold it against them With the SEC and the DOG blade breathing down his neck for stating the obvious Which he knew before anyone else they were accusing him Well, you're just you're just having these companies drum up sales for your company and Burns said no This is a completely new market. We have no idea what the demand is I have people out there beating the bushes trying to find out who's gonna buy these things You don't understand when Burns was doing this. He was the trailblazer There was no Silverado there was no Lightning he was the first one and there was no idea what the demand was going to be especially among fleets Lord some other stock blah, blah, blah, heavy pressure Anyway, that's the thing. Okay Yeah Intent of stock transfer for tax purposes It does not represent a sale by the reporting person the shares were withheld by the issuer Okay That would be Lord Sam owners to satisfy the reporting persons withholding tax obligation You guys can research this it's not an outright sale tomato tomata. Is it distinction without a difference? As I said, I have heard of this happening before myself And it has to do with Options vesting exercising options. I Don't know. Maybe someone can tell us what this all means in the comments. All right Let me move on to the next section here You know, they crash test vehicles fun crash side crash, you know that Driver side hitting the driver side for a head-on side swipe All the motors that came off the crash test vehicles still function. I don't know if the what else do you need to say? Okay Any ice vehicles do their motors function after they get through a crash that's I don't think so and Tesla's do they function after? No, they don't drive. You know, I don't know. Do they maybe somebody could tell me but anybody that's downing the Sturtiness of the endurance What else? Okay, just read read it. You know, there's nothing else to say here. All right. This is Mx ux