In 2019, the company purchased a 6.2 million-square-foot decommissioned GM assembly plant. And GM invested $75 million USD in the company.
The company recently announced plans to produce 20,000 commercial EV trucks at the plant every year, starting in 2021.
Hindenburg Research report alleges fraud
On Friday, Hindenburg issued The Lordstown Motors Mirage: Fake Orders, Undisclosed Production Hurdles, And A Prototype Inferno. Unfortunately, the report is taking a short position on Lordstown. At present, the electric car company has “no revenue and no sellable product. We believe this has misled investors on both its demand and production capabilities.”
Incredibly, shares plummeted 21% on the news. Even after a slight recovery, they were still down at the end of business Friday.
Hindenburg disputes Lordstown Motors January stats it has booked 100,000 pre-orders for its EV truck. The short-seller report claims “extensive research reveals the company’s orders appear largely fictitious. The stats are a prop to raise capital and confer legitimacy.”. Allegations are the “Lordstown’s fleet truck “orders” are a mirage.”
