Brief-selling agency accuses Lordstown of exaggerating truck pre-orders

Short-selling firm accuses Lordstown of exaggerating truck pre-orders

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The short-selling agency Hindenburg Analysis has printed a brand new report alleging that startup electrical truckmaker Lordstown Motors has been exaggerating buyer demand to assist in fundraising. CEO Steve Burns has claimed that Lordstown already has greater than 100,000 pre-orders—sufficient to maintain its Ohio manufacturing unit busy for greater than a 12 months as soon as the corporate begins manufacturing. In actuality, these pre-orders are non-binding. And Hindenburg claims that a few of the supposed clients do not appear to have the monetary sources to make good on their multi-million greenback orders even when they needed to.

Hindenburg is within the enterprise of promoting an organization’s inventory brief after which publishing damaging analysis concerning the agency. If the inventory falls, the corporate makes a revenue. That technique appears to be working with Lordstown. As I write this, Lordstown’s inventory is down about 15 % for the day.

The corporate made its identify with a September exposé of one other electrical truckmaker, Nikola. Hindenburg’s report revealed {that a} promotional video of the Nikola One truck “in movement” really confirmed it rolling down a hill, with the digicam tilted barely so it gave the impression to be driving on stage floor. Nikola’s inventory has fallen about 60 % since Hindenburg printed its preliminary report.

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