Lordstown Motors (RIDE) - Get Lordstown Motors Corp. Class A Report shares on Monday rose sharply after the electric-truck maker issued a preliminary response to a negative report from investment firm Hindenburg Research.
“The company is aware of the remarks made in the report and intends to respond as appropriate in due time,” the Lordstown, Ohio, company said.
“Lordstown Motors remains on track for start of production of its Lordstown Endurance all-electric pickup truck in September 2021.
"This week, the company intends to elaborate on its progress towards start of production, including providing an update on beta vehicle production and other important business developments, on its inaugural earnings call.”
The call is scheduled for Wednesday at 4:30 p.m. U.S. Eastern.
“Lordstown is an electric-vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities,” Hindenburg said.
“The company has consistently pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck. “
But, "our conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy,” the short seller said.
Another assertion in the report: “One senior employee told us that while working with [the CEO] for a couple of years, they saw more questionable and unethical business practices than they had seen in their entire career.”