Monday, March 22, 2021

SEC Launches Investigation Into EV Maker Lordstown Motors

[Auto Styling News]


The Securities and Exchange Commission has asked Lordstown Motors for more details about claims that the EV start-up deceived financiers about its development to date. 

Lordstown Motors, which is backed by General Motors, stated last Wednesday that it is complying with the investigation and its board of directors has created a special  committee to evaluate the claims.

The claims came last Friday from short-selling company Hindenburg Research study, which divulged in addition to the report that it had taken a brief position in Lordstown Motors. 

The company formerly launched a report about hydrogen trucking start-up Nikola that likewise caused probes from the SEC and the Department of Justice.

Hindenburg declared in the report that a few of the EV start-up’s largest preorders were made by business that do not appear to actually have the cash needed to acquire huge batches of Lordstown Motors’ electrical pickup, each of which will begin at around $50,000. 

In January, this blog reported that the company had claimed to have received more than 100,000 non-binding production reservations from commercial fleets for its forthcoming Endurance all-electric pickup truck

Hindenburg asserts that Lordstown Motors deceived the general public, financiers, and the federal government about the development it has made up until now on its first model.

More details here.





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Auto Styling News is a blog that covers car concepts, newly released models, and the auto industry.

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