Lightning eMotors, Inc., a provider of zero emission medium-duty commercial vehicles and electric vehicle technology for fleets, recently reported that battery supply constraints led to fourth quarter revenue of $4 million on sales of 31 vehicles and powertrain units instead of the expected range of $13 million to $18 million on sales of 100-130 units.
The company also attributed the lower revenue to fast-rising interest rates and a demand shift to 2023 because of the impact and timing of new incentive programs starting this year.
Lightning lost significant sales volume during the fourth quarter because Romeo Power Systems, Inc., a subsidiary of Nikola Corp., unexpectedly notified Lightning it would not honor its commitments to supply battery packs or to provide further service or support under its long-term supply agreement with Lightning.
While Lightning had designed-out Romeo batteries for its newer vehicle platforms, Romeo’s abrupt action prevented Lightning from being able to ship vehicles and powertrains built on prior platforms, which Lightning is phasing out in 2023, to be replaced with General Motors and Lightning’s eChassis platforms.
Despite the lower sales in the fourth quarter, Lightning produced 128 vehicles, including its first electrified GM 4500s, and powertrains, up from 104 during the third quarter.
"Our fourth quarter output was the highest in our history by nearly 23%, and more than triple the quarterly production level from a year ago," said Tim Reeser, CEO and co-founder, in a Jan. 10 news release.