Short Seller Hindenburg Accuses Lordstown Motors of Faking EV Truck Pre-Orders
Hindenburg Research takes a short position on Lordstown Motors, alleging the electric vehicle startup fabricates its 100,000 pre-orders to raise capital. Lordstown's CEO strongly denies the claims as "half-truths and lies" aimed at manipulating stock prices ahead of earnings.
Short-seller firm Hindenburg Research targets Lordstown Motors with a scathing report that causes the electric vehicle startup's shares to drop 15 percent. Hindenburg, known for its previous takedown of Nikola Motor, takes a short position on the Ohio-based automaker and accuses the company of having no revenue and no sellable product. The firm argues that Lordstown misleads investors regarding its actual demand and production capabilities for its flagship electric pickup truck.
Central to Hindenburg's allegation is the claim that Lordstown's reported 100,000 pre-orders are largely fictitious and serve only as a prop to raise capital and confer legitimacy. The report alleges that founder and CEO Steve Burns pays consultants to generate these fake pre-orders, a practice that supposedly dates back to 2016 during his time at Workhorse. Additionally, the short seller releases startling evidence, including photos and a 911 call, detailing an incident in January where a Lordstown prototype vehicle bursts into flames during a test drive.
Lordstown Motors quickly pushes back against the explosive claims, with a spokesperson promising a thorough refutation of the report in the coming days. Burns publicly dismisses the research as "half-truths and lies," suggesting Hindenburg intentionally releases the report to damage the company's stock ahead of its first quarterly earnings report as a publicly traded entity. The startup, which operates out of a former General Motors assembly plant and maintains ties to Workhorse, now faces intense scrutiny as it attempts to defend its reputation.