The Lordstown Motors plant is where GM already operated, in Lordstown, Ohio, on October 16, 2020.
Megan Jelinger | AFP | Getty Images
Lordstown Motors said on Wednesday that it received a request for information from the U.S. securities regulator regarding allegations by an investor who took a short position in shares and accused the electric truck’s startup of misleading consumers and investors.
Last week, Hindenburg Research revealed that it took a short position with Lordstown Motors, accusing the company of using “fake” orders to raise capital and claiming that its next truck is three to four years away from production.
“We are cooperating with this investigation,” said Steve Burns, CEO of Lordstown Motors, during a results conference call, referring to the US Securities and Exchange Commission request for information.
He also said that his board of directors formed a special committee to review matters.
Short sellers bet that the price of a share will fall by borrowing shares in the hope of buying them back at a cheaper price and pocketing the difference.
Lordstown Motors shares fell 5% in extended trading on Wednesday.
The company, which in 2019 acquired a closed factory from General Motors in Ohio, said on Wednesday that it is still on track to start producing its Endurance electric pickup in September, as planned, with a plan to build its test vehicles in March.
It also plans to launch the demonstration model for its second vehicle, an electric van, this summer, with the goal of starting production in the second half of 2022.
He reported a loss of 23 cents per share during the quarter from October to December. She said she plans on up to $ 275 million in capital expenditures this year, including investments to expand annual production capacity to 60,000 vehicles next year.