Lordstown Motors Corp. (NASDAQ:RIDE) stock has plunged in the market by -9.54% to the current price of $13.65. The RIDE stock previously closed at 15.09.
Producer of electric-vehicle for commercial fleet
Lordstown Motors Corp. is an electric-vehicle manufacturer based in Ohio. It manufactures light-duty fleet vehicles. The manufacturing plant of the automobile giant exists in Ohio consisting of a 785 acre Assembly plant. This is the exact plant where CEO Steve Burn has announced to build the Lordstown Endurance which is an all-electric pickup truck. Endurance will be the first of its kind electric pickup truck designed for the fleet market.
Why was Lordstown Corp (RIDE) accused of making fake claims
The RIDE stock news has not been good lately and neither is the consecutive streak of losses in the market by the auto-manufacturing corporation.
This all started on 12th March when the investigative research firm known as Hindenburg Research set its sight on the claim of CEO of Lordstown Steve Burns. He claimed on an interview on 23rd February that his company has presold 100,000 electric pickup trucks. Hindenburg states that this claim of orders and order book consists of a series of false or non-binding orders.
What is Hindenburg’s report about?
In the report created by Hindenburg, it has stated that the electric-vehicle manufacturer has misled its investors by lying about its demand and production capability. The Research firm further stated that the company has no solid revenue and no sellable product.
Hindenburg had then shorted Lordstown Motors Corp. (RIDE) which led to a downward plunge in the stock price. This RIDE stock news caused other investigative law firms and research firms to pick on the bones on the company, as is the influence of the Hindenburg’s market reputation.
Since 12th March leading to 18th March, RIDE stock has been under scrutiny of several law firms including The Schall firm, Nationally Ranked Shareholder Rights Firm, and Hagens Berman- National Trial Attorneys.
Steve Burns has defended against the accusation saying that Lordstown won’t directly be addressing the accusations made by the Hindenburg and that the company is cooperating with the regulators to further look into this matter.
