Jim Cramer on Lordstown Motors Following SEC Probe

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Lordstown disclosed on Wednesday that it was facing a SEC probe following short-seller Hindenburg Research penning a report about the company.

Hindenburg said in a report Friday, “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.”

On Monday, Lordstown issued a preliminary response to the report, saying “The company is aware of the remarks made in the report and intends to respond as appropriate in due time.”

On CNBC Thursday morning, Lordstown CEO Steve Burns sat down with CNBC's Phil LeBeau.

LeBeau said, "Steve, let's be clear here, the way that you have characterized your preorders or reservations in the past...you called these, on CNBC, 'serious orders..." and LeBeau questioned whether a preorder or reservation could be called 'serious orders.'

Burns pushed back, stating that the preorders are only to gauge interest.

"I don't think anybody thought that we had actual orders," Burns said.

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