Shares of Lordstown Motors Corp fell as much as 23% on Friday right after Hindenburg Investigate took a quick place on the electric-pickup-truck maker’s inventory.
“Lordstown is an electric vehicle SPAC with no earnings and no sellable product, which we believe that has misled investors on the two its need and creation capabilities,” Hindenburg said.
Lordstown said in January it had obtained more than 100,000 non-binding manufacturing reservations from professional fleets for its electrical truck.
“Our conversations with previous workforce, enterprise partners and an considerable doc evaluate demonstrate that the company’s orders are mostly fictitious and made use of as a prop to elevate capital and confer legitimacy,” Hindenburg said on Friday.
The small vendor also took goal at Nikola Corp in September, accusing the electric-truck maker of fraud, top to the resignation of its founder, Trevor Milton. Nikola had publicly rejected all accusations.
In February, nevertheless, Nikola disclosed that the firm and Milton had built various statements that ended up partly or totally inaccurate, after an inside evaluate.
Following Hindenburg’s accusations, Basic Motors and Nikola in November announced a reworked settlement on a gas-cell partnership, allowing the automaker to again out of taking a proposed equity stake in the startup.
Lordstown‘s shares closed down 16.5% at $14.78.