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NU RIDE INC. (RIDEQ)·Q1 2021 Earnings Summary

Executive Summary

  • Q1 2021 delivered zero revenue, a net loss of $125.2M ($-0.72 EPS), and capex of $53M; management raised 2021 operating expense guidance materially and indicated 2021 Endurance production will be limited to at best 50% of prior expectations .
  • Liquidity declined to $587M cash at quarter-end from $630M at year-end; year-end 2021 liquidity guidance cut to $50–$75M, with management stating additional capital is required to complete business plans; ATVM loan due diligence ongoing .
  • Operational progress continued: 48 of 57 beta vehicles built; frontal and pole crash tests passed; pre-production builds slated for July; SoP remains targeted for late-September 2021 at limited capacity .
  • The near-term narrative hinges on capital raising, supply-chain cost inflation, and validation milestones; investors should expect estimate revisions and increased focus on liquidity and production ramp risk .

What Went Well and What Went Wrong

What Went Well

  • “We are proud to have built 48 out of 57 of our beta vehicles…we recently passed two of the most difficult crash tests” demonstrating tangible validation progress and supporting the 5‑star crash rating target .
  • Retooling of stamping, assembly, body, paint shops nearly complete; battery line Phase One in commissioning; hub motor line equipment installation on track for July, underpinning SoP timing .
  • SoP timeline reiterated for late-September 2021 (limited capacity), anchoring investor expectations around near-term commercialization milestones .

What Went Wrong

  • 2021 operating expense guidance increased by ~$115M at the midpoint versus prior guidance due to higher parts/equipment, expedited shipping, and third‑party engineering spend; additional capital is now required .
  • 2021 Endurance production outlook lowered materially—“limited and would at best be 50% of prior expectations”—heightening execution and scale-up risk .
  • Year-end 2021 liquidity guidance cut to $50–$75M (from “at least $200M”), intensifying focus on financing (ATVM loan, credits/grants) and balance sheet durability .

Financial Results

Income Statement and EPS (USD Millions, except per share)

MetricQ1 2020Q4 2020Q1 2021
Net Sales$0.0 $0.0 $0.0
Selling & Administrative$3.5 $10.8 $14.4
Research & Development$8.5 $27.7 $91.8
Total Operating Expenses$12.0 $38.6 $106.2
Loss from Operations$(12.0) $(38.6) $(106.2)
Other (Expense) Income$0.1 $0.3 $(19.1)
Interest Income (Expense)$(0.0) $0.2 $0.1
Net Loss$(11.9) $(38.2) $(125.2)
Basic & Diluted EPS$(0.16) $(0.23) $(0.72)

Notes:

  • Margins are not meaningful given zero revenue across periods .

Liquidity and Balance Sheet Highlights (USD Millions)

MetricDec 31, 2020Mar 31, 2021
Cash & Cash Equivalents$629.8 $587.0
Warrants Liability$101.4 $7.8
Total Liabilities$35.1 $75.8
Total Stockholders’ Equity$732.1 $703.3
Total Assets$767.2 $779.1
Capex (Quarter)N/A$53.0 (Q1’21)

KPIs and Operational Milestones

KPIQ3 2020 (Update)Q4 2020 (PR)Q1 2021 (PR)
Non-binding Reservations~50,000 (avg ~500/fleet) ——
Beta/Prototype BuildsAlpha 2; beta plan 40–50 vehicles Beta build underway 48/57 beta vehicles built
Crash Tests5‑Star via simulation —Passed frontal & pole tests
Pre-Production (PPV)——PPV builds start July
SoP TimingSep 2021 target Sep 2021 on track Late‑Sep 2021 on track; limited capacity

Guidance Changes

MetricPeriodPrevious Guidance (Mar 17, 2021)Current Guidance (May 24, 2021)Change
Endurance Production (2021)FY 2021Not quantified; implied ramp capacity planning Limited; at best 50% of prior expectations Lowered
Capital ExpendituresFY 2021$250–$275M $250–$275M Maintained
S&A ExpenseFY 2021$40–$45M $55–$60M Raised
R&D ExpenseFY 2021$180–$190M $280–$290M Raised
Year-end Cash & EquivalentsFY 2021≥$200M $50–$75M Lowered
Financing Plan (ATVM Loan)2021Due diligence phase; hope to complete in Q2’21 Due diligence phase; hope to complete “next few months” Timing extended

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2, Q3 2020)Previous Mentions (Q-1, Q4 2020)Current Period (Q1 2021)Trend
SoP TimingTarget Sep 2021 On track for Sep 2021 Late‑Sep 2021; limited capacity Timing consistent; capacity tempered
Beta/ValidationAlpha 2, plan 40–50 beta; 5‑star via simulation Beta build underway 48/57 beta built; frontal & pole tests passed Execution progressing
Supply Chain/CostsCOVID‑related supply chain commentary Insourcing tooling, COVID‑related costs Higher-than-expected parts/equipment, shipping, 3rd‑party engineering Cost pressure increasing
Capital Needs—ATVM due diligence; potential term loan Additional capital needed; ATVM due diligence; credits/grants pursued Funding urgency rising
Customer Demand~50k non-binding reservations Fleet interest; ARI/Holman agreement Expect acceleration of purchase commitments as feedback arrives Demand narrative maintained
Second Vehicle (Van)—Van development accelerated; SoP 2H’22 goal No update in Q1 PR Deprioritized in messaging

Management Commentary

  • “We are proud to have built 48 out of 57 of our beta vehicles and are on schedule to conclude the beta program approximately by the end of June…we recently passed two of the most difficult crash tests…we remain on track to deliver a 5‑star rated vehicle…we do need additional capital to execute on our plans.” — Steve Burns, Chairman & CEO .
  • “We are extremely excited and proud to be so close to delivering our first beta vehicles…We remain on track to start Endurance production in late September…we believe we could be a disruptive force in the automotive industry…” — Steve Burns, Founder, Chairman & CEO (Q4 2020 PR) .

Q&A Highlights

  • The full Q1 2021 earnings call transcript could not be retrieved from the document system due to a database inconsistency; prepared remarks and press release indicate clarifications on limited 2021 production, increased operating expenses, and the need for additional capital, including ongoing ATVM loan due diligence .
  • External references confirm the call occurred May 24, 2021 (4:30 p.m. ET), with third‑party transcript availability noted, but not ingested here due to tool limitations .

Estimates Context

  • S&P Global consensus estimates for Q1 2021 could not be retrieved due to a missing CIQ mapping for ticker RIDEQ in the SPGI dataset, so EPS and revenue consensus could not be compared; attempted via GetEstimates tool (error) [SpgiEstimatesError].
  • Given zero sales and materially higher operating expenses, Street estimates (if available) would likely require upward revisions to 2021 opex and lower near‑term production assumptions in models .

Actual vs Consensus (Q1 2021)

MetricActualConsensus (S&P Global)
Revenue ($USD)$0.0 Unavailable (SPGI mapping error)
EPS ($USD)$(0.72) Unavailable (SPGI mapping error)
EBITDA ($USD)N/A (not disclosed)Unavailable (SPGI mapping error)

Key Takeaways for Investors

  • Validation progress is real (48/57 betas; key crash tests passed), but near‑term output is constrained—2021 production limited to at best 50% of prior expectations .
  • Operating expense guidance was raised sharply, pressuring cash burn; year‑end liquidity guidance reduced to $50–$75M, making financing a near‑term catalyst and risk .
  • SoP remains targeted for late‑September, with PPV builds in July; execution on supply chain, commissioning (battery, hub motor) and validation is critical to de‑risking the ramp .
  • Additional capital is explicitly needed; ATVM loan due diligence continues, with management also pursuing tax credits and grants—monitor funding timing and terms .
  • With zero revenue and rising opex, Street models should shift focus to liquidity runway, capex cadence, and milestone timing rather than near‑term earnings power .
  • Demand narrative persists (fleet interest; expected acceleration of purchase commitments with customer feedback), but conversion to binding orders remains a key proof point .
  • Trading: Expect stock sensitivity to financing headlines, validation milestones (PPV, crash/ durability updates), and any changes to SoP timing or capacity; guidance changes and cost inflation are negative near‑term drivers .