Lordstown Motors set to respond to fake preorder accusations by short-seller
The above cliff is what happened to electric vehicle startup Lordstown Motors stock Friday after short-seller Hindenburg Research issued a report saying the truck company had "misled investors on both its demand and production capabilities."
The big picture: The report hits Lordstown for, among other things, promoting nonbinding "pre-orders" that turn out to be from customers that generally don't operate fleets and "often do not have the means to make the purchases."
The other side: "We will be sharing a full and thorough statement in the coming days, and when we do we will absolutely be refuting the Hindenburg Research report," Lordstown spokesman Ryan Hallett said.
- One thing to watch: The Hindenburg report cites former employees who estimate the company is three to four years away from production of its pickup.
- The company, however, maintains it is on track for a September production launch.
Why it matters: Lordstown is among the various EV startups without commercial-scale production to go public via merger with special purpose acquisition companies.
What's next: Lordstown's first earnings report as a public company coming Wednesday will certainly get outsized attention.