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Lordstown Motors Price Predictions: One Analyst Sees RIDE Stock Crashing to $2

The electric vehicle market may be booming, but the path ahead for all related companies is not necessarily straight. EV startup Lordstown Motors (NASDAQ:RIDE)…

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The electric vehicle market may be booming, but the path ahead for all related companies is not necessarily straight. EV startup Lordstown Motors (NASDAQ:RIDE) just fell victim to a bearish price target issued by an analyst. As a result, RIDE stock has reacted in a way that supports that hypothesis, plunging almost immediately.

Source: Scharfsinn / Shutterstock.com

What’s Happening With RIDE Stock

Yesterday evening, Morgan Stanley analyst Adam Jonas issued a downgrade, moving RIDE stock from a “hold” to a “sell” while slashing his price target for the stock from $8 to $2. This is exactly the sort of drastic prediction that can trigger a selloff, and so far that seems to be what we’re seeing.

RIDE stock fell by more than 7% in pre-market trading today and as of this writing, is down 6.5%.

This comes on the heels of a profitable previous week after Lordstown announced a partnership with international electronics producer Foxconn, which sent shares up by 8%.

What It Means

Jonas acknowledged the upside of the partnership for Lordstown but doesn’t think it should mean much for investors. As he stated in the report “While the agreement with Foxconn helps secure the future of the Lordstown plant and buys time to explore other business opportunities for RIDE (new programs, new platforms, new segments that have yet to be developed), we believe there would likely be little left for shareholders.”

The short term future in the red for RIDE stock that he sees stems primarily from the deal that Lordstown will be receiving in the sale. According to the report, the $230 million that the company will be netting is less than 20% of the plant’s overall value.

Why It Matters

Assuming that everything said by Jonas is true, Lordstown would certainly be taking a loss in the plant sale.

The company’s need for cash is clear, as its cash balance of roughly $225 million is a decrease of $366 million from where it was at the end of the previous quarter. That said, Lordstown needs the cash to expand manufacturing operations and begin the limited production on its highly publicized EV truck, the production for which is expected to begin in late 2021.

EV producers across the globe have failed to deliver on production targets and Lordstown doesn’t want to be among them. Successfully getting an EV truck to market could help get the company back on track, especially one made on U.S. soil where such vehicles are still not being widely produced.

The million-dollar question is, will sales of the new model be enough to offset the loss the company is taking in the upcoming sale? Adam Jonas doesn’t think so, but the stock is worth watching as both the deal and operations move forward.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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The post Lordstown Motors Price Predictions: One Analyst Sees RIDE Stock Crashing to $2 appeared first on InvestorPlace.

Author: Samuel O'Brient

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Energy & Critical Metals

The UK records a 1.1GW increase in renewable PPAs

According to Cornwall Insight’s ‘Renewable PPA market share report’, the market for renewable PPAs is showing increased capacity despite challenges…

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According to Cornwall Insight’s ‘Renewable PPA market share report’, the market for renewable PPAs is showing increased capacity despite challenges in the sector.

In fact, Cornwall Insight assessed a total of 30,710 MW of renewable PPA capacity, a 1,190MW increase from the company’s previous report, which assessed capacity as of September 2020.

Below is a graph that highlights the publicly announced capacity since August 2019. It also shows that the majority of this new capacity came from projects commissioning under the Contracts for Difference (CfD) scheme. As of March 2021, Cornwall Insight identified 905 MW of active CfD capacity signed to a PPA, with a further 3.7 GW of capacity signed to PPAs but not yet operational.

Lee Drummee, Analyst at Cornwall Insight, said: “Corporate Power Purchase Agreements (CPPA) have been increasing in recent years as the market matures and generators seek alternative routes to market to use subsidies. In addition, since the Renewables Obligation and Feed-in Tariff schemes closed to new capacity there has been a gap in the market for generators outside of the CfD, with CPPAs becoming increasingly crucial for generators looking to secure revenues for projects. Similarly, CPPAs have become an effective way for businesses to prove their green credentials.

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“The majority of CPPAs that we have identified have been signed with new-build subsidy-free projects, with solar PV and wind the preferred technologies akin to a more positive attitude from the public towards these asset types, as well as their levelised cost advantages.

“The length of CPPAs analysed in the report varies considerably, ranging between 4 and 25 years, with the most common deal lengths being 10 and 15 years. The longer-term deals tend to be signed with new build projects, needing greater revenue security to develop.

“While subsidy-free PPAs have been more common with corporate buyers, subsidy-free deals between utilities and generators have gained traction. Since we actively began to track these deals in August 2019, we have identified PPAs for 3.8GW of new build capacity. Whilst the vast majority (2.5GW) is with CfD assets. Large portions are also made up of subsidy-free CPPAs (890MW) and subsidy-free utility PPAs (420MW). Over the same timeframe, approximately 2.1GW of existing assets signed new PPA deals, with 1.9GW being signed with a utility offtaker and just 120MW purchased by a corporate buyer.

“While liquidity in the long-term PPA market seems to have improved, right now, developers will be weighing up their options between CfD Allocation Round 4 and alternative routes to market such as utility PPAs and CPPAs.

“Away from PPAs for new build assets, we noted that activity in the short-term PPA market has been buoyed by the continued rise in power prices with competition levels remaining high. However, recently levels of volatility in the wholesale market are creating a different set of challenges, often making fixed priced deals more challenging to offer.”

The post The UK records a 1.1GW increase in renewable PPAs appeared first on Power Engineering International.

Author: nicholasnhede

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Burundi’s first grid-connected solar farm reaches commercial operation

A pioneering 7.5MW solar PV plant has reached commercial operation in Burundi, increasing the country’s generation capacity by over 10%.
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A pioneering 7.5MW solar PV plant has reached commercial operation in Burundi, increasing the country’s generation capacity by over 10%.

It’s the country’s first substantial energy generation project to go online in over three decades, supplying clean power to tens of thousands of homes and businesses.

The plant near the village of Mubuga supports international efforts to increase renewables and climate finance, especially for the world’s most vulnerable communities.

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UK Minister for Energy, Clean Growth and Climate Change, Greg Hands, said: “Today’s launch of Burundi’s first grid-connected solar farm will light up the nation’s energy system. It will strengthen the national grid supply and propel forward a promising future for the country in clean, green energy.

“Set to increase Burundi’s power generation capacity by 10%, this pioneering project, backed by UK government funding, is a fantastic example of countries working together ahead of COP26. Investing in a green future benefits the economy and the planet.”

The six-year process of building the solar plant was led by energy developer and independent power producer Gigawatt Global.

Financing for the construction of the project was provided via a consortium including pan-African private equity investor Inspired Evolution, the UK government-funded Renewable Energy Performance Platform (REPP – managed by Camco Clean Energy), and Gigawatt Global.

The construction loans are being refinanced by the US International Development Finance Corporation (DFC).

Additional support for the project was provided directly and indirectly from the Energy and Environment Partnership (EEP – a fund set up by Finland, the UK and Austria), the Belgian Investment Company for Developing Countries (BIO), Trinity International has advised the Gigawatt Global and Inspired Evolution equity teams since 2017. Engineering, procurement and construction services were provided by French firm Voltalia, and political risk re-insurance is provided by DFC.

Gigawatt and Voltalia Teams. Image credit: Gigawatt Global

Gigawatt Global CEO Josef Abramowitz said: “We thank our impact investors and strategic partners, as well as the Burundi government, for joining forces to accomplish this historic milestone on the road to climate justice and fulfilling many of the UN’s Sustainable Development Goals.”

Abramowitz, who was nominated by 12 African countries for the 2021 Nobel Peace Prize for his pioneering commitment to green energy access, continued: “Green energy projects that serve the most vulnerable communities should be prioritized by the international community.”

The Burundi field recently received the award for “Project of the Year” from EEP.

Gigawatt Global is also building a community centre powered by solar energy that will offer local access to productive use of electricity.

The centre will focus on community development through women’s empowerment and youth and employment programs, along with various educational components being developed with local and international NGOs.

The post Burundi’s first grid-connected solar farm reaches commercial operation appeared first on Power Engineering International.

Author: Pamela Largue

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Chart of the Day: Plenty of immediate upside targets for Ionic Rare Earths

Let’s get into it. Iconic Rare Earthss (ASX:IXR) is a bullish set up from a technical perspective. It’s in an … Read More
The post Chart of the Day:…

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Let’s get into it.

Iconic Rare Earthss (ASX:IXR) is a bullish set up from a technical perspective.

It’s in an uptrend. The moving averages are sloping up.

It’s shown us that when it wants to the market can get a hold of it – as evidenced by the fierce run from 1.5c to 6c at the start of this year.

 

Chart of the Day: Ionic Rare Earths (ASX:IXR)

There are no immediate gaps on the chart to worry about that need to be filled.

The company surpassed 4c resistance yesterday on increasing volume, which was a positive sign. However, after touching 4.5c in intra-day trade, it has now settled back to close at 4.2c, leaving a daily selling candle.

That infers that a test of 3.8 – 4c may be on the cards.

In our view that would make attractive buying.

Given the negative response to the scoping study in late April, there are plenty of immediate upside targets, the most immediate being 4.7c, with further potential to those March highs above 6c.

Back the other way, and we don’t need to hold this below 3.5c.

The company is well funded – reporting over $11m on balance sheet at their last quarterly – with an updated quarterly anticipated before the end of the month.

We are long as of yesterday, and will manage the trade to the above risk, looking for 4.7c first, with potential to above 6c if things go their way.

Steve Collette of Collette Capital Pty Ltd (ABN 56645766507) is a Corporate Authorised Representative (No. 1284431) of Sanlam Private Wealth (AFS License No. 337927), which only provides general advice.

Collette Capital only makes services available to professional and sophisticated investors as defined by the Corporations Act, Section (s)708(8)C and 761G(7)C.

The Collette Capital Wholesale IMA Strategy has returned +24.83% p.a. net of all fees as at the end of September 2021 since inception in January 2015 (using the Time Weighted Return method of calculating returns).

Learn more at www.collette.capital

The post Chart of the Day: Plenty of immediate upside targets for Ionic Rare Earths appeared first on Stockhead.


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