Short selling research firm Hindenburg Research has issued a new short report on Lordstown Motors (RIDE) in which it accuses the company of having “misled investors on both its demand and production capabilities.” While the company has “consistently” pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck, the firm’s conversations with former employees, business partners and an “extensive document review” indicate that “the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” Hindenburg claims. Former employees reportedly claimed that the company “has completed none of its needed testing or validation, including cold weather testing, durability testing, and Federal Motor Vehicle Safety Standards testing required by the NHTSA,” according to the short report. In pre-market trading, Lordstown shares continue lower and are down $3.09, or 17%, to $14.62 as of time of writing.
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