Shares of Lordstown Motors tumbled as much as 23% on Friday after short-seller Hindenburg Research said the electric pickup truck maker has misled investors.
The research firm said it had taken a short position in the Lordstown Motors after determining that it has “no revenue and no sellable product.”
Lordstown’s stock plunged to as low as $13.64 per share on Friday. The company went public via a SPAC in October amid a rush of other EV SPACs including Nikola, Hyliion, Canoo, and Fisker.
Hindenburg slammed Lordstown for misleading investors on both its demand and production capabilities. Lordstown said in January it had received more than more than 100,000 non-binding production reservations from commercial fleets for its EV truck.
“The company has consistently pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck,” Hindenburg said. “Our conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.”
Lordstown Motors is down roughly 25% since its public debut in October.