Brief vendor Hindenburg Research targeted Lordstown Motors (RIDE) after using aim at EV stocks Nikola (NKLA) and Kandi Technologies (KNDI), accusing the truck that is electric of misleading investors with fake sales.
Friday Lordstown misled investors on both need and production capabilities, Hindenburg said in report published.
“former employees to your conversations, business partners and an extensive document review show that the business’s purchases are largely fictitious and utilized as being a prop to raise money and confer legitimacy,” the brief seller stated.
In January, Ohio-based Lordstown stated a lot more than 100,000 pre-orders from fleet operators for its proposed vehicle that is all-electric. It touts an assortment that is 250-mile the Lordstown Endurance and claims it’s on course to start out producing the EV this September.
But previous workers estimate the truck that is electric “3-4 years far from manufacturing, if it ever gets there,” Hindenburg said in its scathing report. The EV “spontaneously combusted” in its extremely road that is first, it alleged.
Within an meeting because of the Wall Street Journal, Lordstown CEO Steve Burns reacted that the short-seller report held half-truths and lies. Hindenburg features a inspiration to harm Lordstown stock ahead of the company issues its first report that is quarterly a publicly exchanged entity on Wednesday, he included.
Like many EV that is new, it has a company plan but no revenue as yet. The organization purchased an GM that is old plant Lordstown, Ohio, in November 2019. Its Endurance trucks will set you back $45,000 after federal rebates which are EV.
But it will hotly enter a contested market. Within the next anyone to three years, General Motors (GM), Ford (F) and Tesla (TSLA) all plan to bring electric pickups to your marketplace for the time that is first. Therefore do EV startups Rivian, supported by Amazon (AMZN), and Canoo (GOEV).
RIDE Stock, EV Shares
Lordstown shares sank 16.5% to shut at 14.78 in Friday’s currency markets. RIDE stock further undercut the line that is 40-week dropping underneath the 10-week line in belated February, based on MarketSmith chart analysis. Among other EV stocks, Nikola stock lost 0.4% and Kandi shed 1.1percent, with both EV stocks also below their 10- and lines being 40-week. Tesla fell 0.8percent.
The vendor that is brief China’s Kandi final November, alleging it comprised sales. The seller that is short damning Nikola report resulted in the unraveling of the manufacturing pact with GM. That, in change, finished Nikola’s hopes of producing the Badger pickup truck that is electric. Brief vendor Hindenburg Research targeted Lordstown Motors.