Lordstown
Lordstown Motors said its investigation of the Hindenburg Report concluded that the report “is, in significant respects, false and misleading. In particular, its challenges to the viability of Lordstown Motors’ technology and timeline to start of production are not accurate. The investigation did, however, identify issues regarding the accuracy of certain statements regarding the company’s pre-orders.”
Lordstown Motors made periodic disclosures regarding pre-orders that were, “in certain respects, inaccurate,” the company said.
“Lordstown Motors has stated on several occasions that its pre-orders were from, or ‘primarily’ from commercial fleets,” the company said. “In fact, many pre-orders were obtained from ... fleet management companies or other end users that indicated interest in purchasing Endurance trucks, similar to commercial fleets, and so-called ‘influencers’ or other potential strategic partners that committed to attempt to secure pre-orders from other entities, but did not intend to purchase Endurance trucks directly.”
“One entity that provided a large number of pre-orders does not appear to have the resources to complete large purchases of trucks,” Lordstown Motors said. “Other entities provided commitments that appear too vague or infirm to be appropriately included in the total number of pre-orders disclosed.”
The SEC this year subpoened Lordstown Motors for documents and information related to the merger between Diamondpeak and Legacy Lordstown that created the publicly traded company, and pre-orders of vehicles. The company said it is cooperating with the SEC.
The company said it plans to hold “Lordstown Week” starting June 21 to show off the factory and its Endurance pickup truck prototypes for shareholders, partners, suppliers and other invited guests. The event will include meetings and presentations with the company’s now revamped executive team.
The management change “could be an actual or perceived prerequisite of [Lordstown Motors] securing much needed additional capital,” John Murphy, industry analyst with Bank of America, said in a note to clients.