 A little bit about the shorts with the short statuses on the stock, the fake news is coming out and I got a great section at the end, stay tuned for it about the chip, the IC chip advantage that Wardstown Motors has. This is something nobody is talking about and I think this is what Mike Burry's recent shorts are all about. Take a look at the video. Please shoot me a like and guys, I need you to subscribe if you like this information. There aren't any of us Wardstown fans out here. I need every one of you to subscribe. Thanks. MXUX. I'm just going to start out here with a chart of today, which is, you know, kind of grim, but not really. I had a tightening here in the Bollinger bands and then it just went down and 478 knots up after hours, take a look at after hours 483. So there you go after our trades, let's just see if they're trending up and down a little bit, but whenever that's where we are with the stock, I just want to go over a couple of other things before I get into the presentation. This is a report that just came out by Allied Research. It was mentioned in a Motley Fool article which was replete with errors and misinformation and I don't know if Motley Fool is doing this intentionally or if it's just incompetence, but they are really creating problems for Lordstown, considering their distribution honestly. I mean the stuff that was said in this article, other than this report, was ridiculous. Anyway, they talk about the 2030 market, the hub motor market is going to be $12 billion and this is a 300 point and it's by 2030. Lordstown Motors right here, Lordstown Motors is mentioned prominently in this report and they talk about a lot of different things, vehicle deployment, but anyway they say that the COVID, you can get the report if you want, it's a few hundred dollars. I just wanted to go over this after that short. This is a little, this is not up to date because of course the price isn't right, but we got percentage of float, the short is 27, it was higher, it might be a little higher now. That's how much of the float is short and this is a short I put together which of course is backwards, settlement date, short interest, this might be one day, there might be one day of missing off this, so what I did here was I just wanted to see what the relationship was between the average daily share volume and the short interest and again this would be time period zero and this would be today and this would be the trend here and this would be the short interest and this would be the total daily volume, so as you can see we got a really big bubble here, but when the volume goes up, the average daily training volume goes up, I believe this was the rash of institutional buys, the short goes down and we got this going down a little bit at the end here, anyway just to say that there's a lot of short interest, a lot of short pressure on this stock, I think it's largely due to a lack of information and misinformation, anyway you can pause, you can check that out if you want. Now I just want to, I'm just going to read this to you, it's kind of boring, but we're going to go through it and it's not going to take too long, it's going to be quick, anyway this is my take on a couple different issues that have come up in the comments and I think a real catalyst that may be coming up, okay this is Lord's time, I'm not a financial advisor, do not rely or make decisions on this, okay do your own DED, I'm not, I'm doing this for educational purposes, all right on funding, the thing is Mercedes came at this same point in time, a little bit before this in Tesla's histories, Mercedes got 10% of the company for cash input which they sold cheap, so substitute GM, another funding source they could pursue is Chamath, Matapata Patapetalon, he did cash for bonds, convertible bonds, I think they're paying one point or two points, something like that, I'm not even sure what a point is but it's very close to the risk-free rate and they were convertible to stock and he felt that this was a better way to invest in the risky asset because if there was a bankruptcy the bond holders are held first and then at a later date when the stock is worth more it can be converted to bonds and of course the company decides all the details on this but these convertible bonds were very popular with Chamath he did very well with them and they were, they made sense to the consumers and you know just regular bonds you know backed by assets you know that's typical bond financing and again they got a lot of assets there you know what I mean, then you have you know commercial paper which I'm no expert on but bonds, this is bonds convertible to stock and commercial paper you can get 90-day loans, 120-day loans depending what would the rate be who would write it but this is another thing you can get you know there's a stock offering which is not optimal at this point they don't want to do that but they might once they can talk about actual orders and this is a question I have when are they going to be able to talk about orders, when is it going to be okay with the SEC, when are they going to say they have a product, after they have National Highway Traffic Association certification on the PVV okay or is it going to be when they start production but once they can actually talk about orders they can borrow against receivables this is very common okay and the stock price should go up so they should have more options as far as finance the question is when is the SEC going to say because nobody wants to get arrested and they don't want to they don't want to create any more problems so they're not allowed to talk about it till they have a product what is the operational definition of a product if someone out there knows this is going to make a big difference for the company I think it comes with this certification and running one production vehicle and then they could say it once they have that I think they're allowed to talk about their orders right now they got the SEC on their neck they're not saying anything another idea for for this is for funding is carbon credit arbitrage they're doing a three-year deal for GM I think it's for 75% anyway I mean you know they could sell options they could pre-sell credits I mean whatever you know they can allow people to buy options on buying credits there's a whole other thing here we went over rent out factory space they can sell hub motor units as according to that report from alliance research they could also sell battery packs and I have camping world here you know they were going to put words on battery packs in their their trailers might not be camping world but it could be another camping manufacturer so so they could sell hub motors they could sell better for and they could manufacture for others as I said in my last video a bluebird you know frame strife strife trains so these are some different methods of funding I am not a finance guy I don't know a lot about finance so this is what I'm saying don't take my word for it on the rest of this I think the key is here when they could talk about you know up to this point they this would burn's got in trouble with when he had the the hard hat on and when they attacked him you know he said I can't talk about orders because we don't have a product when do they have a product is that the national highway trade up traffic safety administration certification does that designate a product and when they roll one off the off the line does that designate a product when they make one sale does that designate a product when that when that happens they're going to be able to talk more freely about what kind of orders they have I think it's going to make a big difference now this is a new topic that has come up that a lot of people aren't paying attention to that's these IC chips that go in the vehicles I'm just going to try to read this and go over it and follow this step by step manufacturers were dumped by car companies at the start of COVID so these chip manufacturers at the start of COVID the the car company shut down they had no customers they had to find new customers they went to gaming and whatever else now all their stock is sold out and they don't trust uh they don't trust the car companies and they they they have a more diversified customer base now and it looks like they are not going back to the car companies in any big way okay uh and I'll go over that in a second uh Intel is working with the federal government for more capacity okay this is like a very specific thing they're doing there uh but they need six to nine months to start up um that's what they say I've actually done some work recruiting having to do with integrated circuit uh manufacturing facilities they are a giant robot it is mostly robotics it's a robotic clean room um that is the environment they're you know hundreds of million dollars of dollars to build uh the bigger they are the more they um they cost obviously um they are complex but they do have it down so as long as they have the chip designs which Intel says they do or have access to uh they can build these these factories and get them up and running they they said six to nine months I'm thinking more like a year okay so this is going to go on for at least I would say nine months okay at least nine months this chip shortage if not more and you know how many will Intel Intel is going to have to build you know two three plants or one giant mega plant or you know there's a lot of a lot of demand for these chips but anyway this is this is the solution that Biden is working on and it's with Intel INTC I think it's just simple this is trade at 52 maybe something to look into that's not financial advice okay now this is the big deal going forward OEMs Ford and GM let's call will not produce vehicles so that dealers have 120-day supply of cars on hand to sell that is history they're not going to do that anymore they're not going to just spit out hundreds of cars put them on the lots and sell them okay so a lot of these car lots have 120-day supply even more than that on their lot of cars to sell here's an example next month Toyota which is like one of the biggest car manufacturers in the world it's going to cut production 40 percent that's in September VW is closing a plant okay some some experts are saying there's going to be seven million less vehicles manufacturers say manufacturers say the car companies are saying well you know it's going to be next month but the experts are saying this is not this is for real it's not made up they're going to cut production way back this is going to go on and on and the way it's going to work is you will have to order your vehicle say you want to buy a Ford pickup you're going to have to order that okay with the company if you want AC you're going to have to pick the package that has AC and other upgrades okay so you're not just going to be able to say oh I want AC you're going to have to get the AC and you know the blah blah blah and the deer foam headliner and all the rest of it there's going to be like 10 items in that package it's going to increase the cost so there's going to be no more I just went one option so you're going to have to order your vehicle your choice is going to be limited okay vehicle costs will go up wait times will be 90 to 120 days to get a car okay that's going to be the way it is no more end of the month sales no more lot markdowns no more negotiating the price uh it's basically everybody's going to turn to the tesla this is pretty much the tesla okay build the order and farm manufactured profits are going to rise customers are going to get screwed which is the american wick all right there's going to be higher prices and fewer choices all car makers are expected to follow this in response to this chip shortage so it's just not going to be forward or toyota they have to make cars to make money that's what they're in business for they have fewer chips fewer cars so if they're going to stay in business the cars are going to have to be more expensive so this chip shortage in regards to car companies and you know what the car companies don't care they say good we're just going to spur over the customers i mean gm forward legacy dealers uh i suspect this chip situation is in part the basis for mike burry short of tesla because this is basically tesla's present model so so tesla is going to be able to cut back to this model this is their model uh so what are we going to do you're gonna have to shut down they're opening all these new plants up where they're going to get the chips you're gonna have to shut down these plants intermittently or pause the re-openings this is i believe the the core case for mike burry's shorts now tesla may come up with some genius idea but even if they want to build a plant to make their own chips it's going to take them a year and the other reason he's short short and arc invest because tesla's their number one holding so again everybody's going to move to the tesla model tesla's already at it that means they're going to shut down but this is a really being understated under reported and misunderstood by the market i think according to my research i've done quite a bit of research on this now let's talk about lordstown motor company and chips okay it was said chips were pre-purchased for the first year of production okay so they have them they are not going to be construction constraint they're going to be one of the few companies that's going to be able to run full tilt for the first year or to build the orders the mysterious orders that we don't know what they are they have enough chips to build them so that gives lmc i mean if they want to order a bunch of fleet lightning pickups good luck with that right they want to order a fleet of endurance vehicle to grid pickups uh virtue of via nuvo or nuvi or lenvo hey guess what you're in luck okay because lordstown it's the chips big deal also by design endurance is a simpler product it it's a fleet design it's utilitarian smaller smaller screen fewer screens has knobs right i think no cruise control no self-driving no fancy climate control right the only thing they got is a wheel the wheel controllers have chip chips battery inverters have chips okay but it's not like a fully option f150 lightning which is what they've sold the most of the most expensive ones excuse me they're going to be full of chips so they're going to be delayed even more um and their fleet truck i'm sure also has chips they got a differential in the back that's a mechanical differential that is electronically controlled and driven by electric motor how many chips are in that alone think about it okay forget about everything else uh much simpler the endurance is you know they can even make it more simple okay is there kind of pre-production now they're still treated they could reduce chips so the endurance has the chips to put in and they need fewer chips i believe to manufacture their car um so florid feet so florida has a hundred carers for the most posh f-150 lightning so far and they have a limited number of chips they're going to this model too will they produce fleet lightnings allocate the chips to lower profit vehicles i don't think they will i think that they are going to put those chips in their highest profit vehicles because they're going to have reduced unit sales this could lead to a position where you know their their fleet sales were down 26 percent last year they could be down again this could be a big opening for the endurance hey we want to go to electric fleet what's our choice well we could order it from ford it's going to take 92 120 days or we could order it from lordstown we can have it in 30 days get my drift so they have the first year of production laid out now they've moved this ahead i don't know this is my estimation of the situation maybe i'm wrong maybe my information isn't correct but they have paused uh production to start next year so 2022 they should have be ready to rock and roll whereas everybody else is going to be crippled by the chip shortage thing uh okay this is the catalyst once they have a product they could talk sales in order you know uh this is what i mentioned earlier they ain't got it you know i'm sure little lawyers are they're talking about lawyers right now what what what is the operation the definition of a product as soon as they have a product they can talk about orders okay it's going to be a big deal at some point they should be able to announce or make forecasts and you know this is going to be a huge huge catalyst for lordstown going forward uh chip issue will be there lmc has a chip for one year production which has been pushed to 2022 and intel will have production up it's set in six to nine months let's make that a year three months to start distribution change that puts new chip supply starting December 2022 so lma lmc should be able to do production right up to that point so while everybody else is waiting for this timeline to develop where more chips will be in supply lmc is going to be working that whole time they should be able to produce right up to that point then hopefully as soon as they run out of their supply they're going to get a new supply chain and continue production without a hitch so it's going to work out and while everybody else is going to be crippled in production during the chip shortage lmc isn't by the time they start up there should be a new supply chain ready so lmc has a chance to leapfrog everybody in the market and still be basically the first first starter first one so theoretically lm lmc can dodge the chip shortage and uh and maintain production without reduction going forward providing they can get funding to go into production now they have said that they have enough funding to do the first year of production uh the going concern statement said may of next year they're going to be out of money i don't know there's a bunch of different things on this they have ways of raising money so they have funding in hand to get this certification okay now once they get this certification if this operationally does up defines a product they got enough money to start production but they're going to need more money to to do production uh so let's say they're pushing it ahead so they said may then under the old schedule may june july so they got till august of next year probably sept they got like till september of next year before they have to to uh raise money so this is rough back in the envelope so september of next year is where they're gonna have to raise money by so they have the chips they can leapfrog everybody um they can get into production next year they should be able to run out of chips right when the new chips become available without interrupting their production schedule at all once they're certified they should be able to talk about how many orders they have stock price should go up once they're in production have uh are able to talk about sales i think they're not gonna have any money or any problem raising money anyway this is a pretty rosy scenario i could be wrong i'm just laying this out but this this whole chip thing is is a big plus for lord's town they're in the cap board seat i think ford i don't know how ford could sacrifice uh those hundred thousand dollar lightnings for fleet sales i don't think they i don't know can they do it i don't know do they have the intestinal fortitude i don't know anyway that's all i have to say guys again we're looking at that what are they saying it's september next year it's when they're gonna have to have the big money and by that time all this should have been done so that's my take on it i hope you guys like the video probably gonna do a close on this thanks for watching guys please subscribe i'm gonna get my subscriber count up like lord's town because there ain't many of us lord's downers out there we all gotta we all gotta get together on this you all gotta support me this motley fool these idiots i'll tell you the stuff they're putting out it's it's terrible and and this this company is the most misunderstood company in the world right now and um you know the price is low the stock price is fine i think that's a new low so anyway this is a pre-revenue spack risk on investment do your due diligence could result in catastrophic losses all right thanks this is mxux hi this is mxux that's the end of the video i'm not a financial advisor do not take this as financial advice do your own dd this is a pre-revenue spack could result in catastrophic losses having said that that little circle down there with the palm tree and the roller skaters in it is the subscribe button could you press it please it being so tight with them click subscribe and get more information on lord's town i also cover cover many other topics at chara so forth thanks a lot for watching this is mxux