Allegations claim an effort to raise capital. Supposedly, Steve Burns “paid for customers to book valueless, non-binding pre-orders” as early as 2016 at Workhorse.
The report also alleges “executives and directors have unloaded approximately $28 million in stock. Hindenburg points at poor practices when executives unload stock in a company with no actual product which claims to be on the cusp of mass-production.”
Lordstown unveiled the Endurance electric truck in June 2020. Hindenburg says the firm left out many important details. Plans for the pickup’s interior design, battery, or performance criteria were not available. The company has completed “none of its needed testing or validation, including cold-weather testing, durability testing, and Federal Motor Vehicle Safety Standards (FMVSS) testing required by the NHTSA,” Hindenburg’s report states.
The report also provides photos and information of a 911 call of a January incident when a Lordstown prototype vehicle exploded into flames during a test drive.
Lordstown Responds
Burns told the Wall Street Journal Hindenburg’s report contains “half-truths and lies.” And accuses Hindenburg of trying to hurt Lordsburg’s stock price in its first quarterly earnings report since it became publicly traded.
