Sunday, July 27, 2025
  • PRESS RELEASE
  • ADVERTISE
  • CONTACT
Happy With Car
No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS
Happy With Car
No Result
View All Result
Lordstown Motors gets SEC scrutiny over short-seller Hindenburg’s claims

Lordstown Motors gets SEC scrutiny over short-seller Hindenburg’s claims

by admin
March 18, 2021
in Market
0 0
0
Share on FacebookShare on Twitter


SAN FRANCISCO — Lordstown Motors mentioned on Wednesday it had acquired a request for info from the U.S. securities regulator concerning accusations by an investor that took a brief place within the inventory and accused the electrical truck startup of deceptive customers and buyers.

Final week, Hindenburg Analysis revealed it had taken a brief place in Lordstown Motors, accusing the corporate of utilizing “faux” orders to lift capital and claiming that its upcoming truck is three to 4 years away from manufacturing.

“We’re cooperating with that inquiry,” Lordstown Motors CEO Steve Burns mentioned throughout an earnings convention name, referring to the U.S. Securities and Change Fee’s request for info.

He additionally mentioned Lordstown’s board of administrators has shaped a particular committee to assessment the issues.

Burns mentioned Lordstown received’t straight tackle Hindenburg’s accusations. The truck is on schedule to be inbuilt September, with a plan to construct its take a look at automobiles this month, Burns mentioned, a timeline Hindenburg’s report had doubted.

Curiosity from prospects signifies robust demand, Burns mentioned. Lordstown and founder Burns have been accused of deceptive buyers by exaggerating orders for the Endurance.

“Our interplay with our buyer has allowed us to gauge demand,” Burns mentioned on the decision. “This gauge is vital as a result of tooling can price a whole lot of thousands and thousands of {dollars}. We’re within the means of increasing our manufacturing capability to 60,000 vehicles a 12 months.”

Quick sellers wager that the value of a inventory will fall by borrowing shares within the hope of shopping for them again at a less expensive value and pocketing the distinction.

Shares of Lordstown Motors have been down 5% in prolonged buying and selling on Wednesday.

“Our conversations with former workers, enterprise companions and an intensive doc assessment present that the corporate’s orders are largely fictitious and used as a prop to lift capital and confer legitimacy,” Hindenburg mentioned final Friday.

Burns, in a textual content message to Bloomberg, addressed that accusation, saying “we all the time said that pre-orders have been non-binding. That’s what pre-orders are.”

He mentioned Wednesday that buyer curiosity had exceeded the corporate’s expectations.

The corporate in 2019 acquired a shuttered Normal Motors plant in Lordstown, Ohio.

It additionally plans to unveil the demonstration mannequin of its second automobile, an electrical van, this summer season, with a purpose to begin manufacturing within the second half of 2022.

Lordstown reported a lack of 23 cents per share through the October to December quarter.

In its report, Hindenburg mentioned Lordstown is an organization “with no income and no sellable product, which we consider has misled buyers on each its demand and manufacturing capabilities.” 

However the firm has been upfront about not having income from automobile gross sales, and is spending money getting its truck into manufacturing.

The corporate had $630 million in money on the finish of the 12 months. With projected capital expenditures of $250 million to $275 million in 2021, and $220 million to $235 million in working prices and R&D, Lordstown expects to complete this 12 months with not less than $200 million in money. The corporate is making use of for a mortgage from the U.S. Division of Vitality beneath the Superior Know-how Automobiles Manufacturing program.

Materials from Bloomberg was used on this report.

 

 





Source link

Tags: claimsHindenburgsLordstownMotorsscrutinySECshortseller

Related Posts

Tariffs Have Cost VW Group .5 Billion: ‘Negative Impact’
Market

Tariffs Have Cost VW Group $1.5 Billion: ‘Negative Impact’

July 26, 2025
Trump Just Struck a ‘Massive’ Trade Deal With Japan. Here’s Why Detroit Is Furious
Market

Trump Just Struck a ‘Massive’ Trade Deal With Japan. Here’s Why Detroit Is Furious

July 24, 2025
GM Took a .1 Billion Hit in Profits Thanks to Tariffs
Market

GM Took a $1.1 Billion Hit in Profits Thanks to Tariffs

July 22, 2025
Tariffs Are Already Killing New Cars Under ,000: Study
Market

Tariffs Are Already Killing New Cars Under $30,000: Study

July 19, 2025
Mercedes EQ Models Just Got Way Cheaper
Market

Mercedes EQ Models Just Got Way Cheaper

July 18, 2025
2026 Hyundai Palisade Price
Market

2026 Hyundai Palisade Price

July 15, 2025
Load More
Next Post
Nearmap US Post-Catastrophe Aerial Imagery Helps Insurers Analyze The Impact of Natural Disasters To Improve Carrier Response Times – Insurance Industry Today

Nearmap US Post-Catastrophe Aerial Imagery Helps Insurers Analyze The Impact of Natural Disasters To Improve Carrier Response Times - Insurance Industry Today

Acura announces 2021 TLX Type S on-sale date and approximate price

Acura announces 2021 TLX Type S on-sale date and approximate price

Categories

  • Auto News (3,425)
  • Automative Reviews (1,942)
  • Car Brands (2,068)
  • Insurance (3,450)
  • Market (1,610)
  • New Cars (2,169)
  • Technology (2,045)
  • Videos (2,145)
Happy With Car

Find the latest automotive news. Read car news from the auto industry including auto shows, latest vehicles, future cars and more.

Categories

  • Auto News
  • Automative Reviews
  • Car Brands
  • Insurance
  • Market
  • New Cars
  • Technology
  • Videos

Recent News

  • Most Legendary SUV ever!
  • Sotefin Bharat to Launch ₹80 Crore IPO for Automated Parking Solutions in West Bengal, ETAuto
  • Alpina’s Logo Just Got Slightly Less Cool
  • Home
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact

Copyright © 2020 Happy With Car

No Result
View All Result
  • HOME
  • AUTO NEWS
  • AUTOMATIIVE REVIEWS
  • NEW CARS
  • CAR MARKET
  • CAR BRANDS
  • TECHNOLOGY
  • INSURANCE
  • FINANCE
  • VIDEOS

Copyright © 2020 Happy With Car

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In