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Lordstown Motors Responds to Damning Allegations, While SEC Investigates

Last week ended with a bang for Lordstown Motors and not of the good kind. Short-seller Hindenburg Research targeted Lordstown in a lengthy expose, calling the EV startup a “mirage” based on lies and fake orders.
The Endurance electric pickup truck is on track for a September delivery, says CEO 7 photos
Lordstown's first vehicle, the Endurance electric pickup truck, is expected to start deliveries later in 2021Lordstown's first vehicle, the Endurance electric pickup truck, is expected to start deliveries later in 2021Lordstown's first vehicle, the Endurance electric pickup truck, is expected to start deliveries later in 2021Lordstown's first vehicle, the Endurance electric pickup truck, after 10 minutes on its first road testLordstown's first vehicle, the Endurance electric pickup truck, after 10 minutes on its first road testLordstown's first vehicle, the Endurance electric pickup truck, after 10 minutes on its first road test
We covered most of the claims made by the short-seller in a coverstory, but here’s a recap. Hindenburg came out accusing Lordstown CEO Steve Burns of lying his way into investors’ hearts: the Endurance pickup truck is three to four years to delivery, if it ever gets made at all, and most fleet orders for it, which helped Burns get more funding from investors and claim hundreds of millions in future revenue, are fake.

Hindenburg also mentioned the first test drive on a public road for Endurance, which ended after just 10 minutes when the mule caught fire and burned down to the ground. That was a vehicle that had passed factory testing, it was said.

On an earnings call with investors, the first one since Lordstown went public, Burns addressed the claims—but it was only to say he couldn’t respond to the allegations directly. An internal review is underway at Lordstown, as is an investigation by the Securities and Exchange Commission (SEC), Burns said.

“We want to take a moment and acknowledge that we are aware of the short-seller’s report,” Burns said, as cited by The Verge. “That is all we can say, and we cannot comment on this during the Q&A period following this call, or any follow-up questions and conversations, until the special committee has finished its review.”

On the same earnings call, Burns seemed unfazed by the two investigations. He said Lordstown was speeding up development on an electric van and insisted that Endurance was on track for a September 2021 delivery. When that happens, Endurance will become the first electric pickup truck to market, he stressed.

While Burns wasn’t OK discussing the Hindenburg claims with investors, he made his stance clear in a previous chat, notes the same media outlet. Taylor Swift was quoted, even. “There’s always haters,” he said. “I quoted Taylor Swift to somebody the other day: ‘Haters gonna hate, hate, hate, hate, hate. You gotta shake it off’.”

So there you have it.



 
 
 
 
 

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