The Lordstown Motors factory is where GM once operated, in Lordstown, Ohio, on October 16, 2020.
Megan Jelinger | AFP | Getty Images
Lordstown Motors said on Wednesday it had received a request for information from the US securities regulator on allegations of an investor who took a short position in the shares and accused the start-up of electric trucks of deceive consumers and investors.
Last week, Hindenburg Research revealed that it had taken a short position at Lordstown Motors, accusing the company of using “false” orders to raise capital and claiming that its next truck is three or four years out of production.
“We are cooperating with this investigation,” said Steve Burns, CEO of Lordstown Motors, during a earnings conference call, referring to the U.S. Securities and Exchange Commission’s request for information
He also said his board has formed a special committee to review the issues.
Short sellers are betting that the price of the shares will fall by borrowing shares in the hope of buying them back at a cheaper price and wrapping up the difference.
Shares of Lordstown Motors fell 5% in extended trading on Wednesday.
The company, which in 2019 acquired a closed General Motors plant in Ohio, said Wednesday it was on track to start producing its Endurance electric pickup truck in September as planned, with a plan to build its test vehicles in March.
He also plans to present the demonstration model of his second vehicle, an electric van, this summer, with the aim of starting production in the second half of 2022.
It reported a loss of 23 cents per share during the October-December quarter. He said he expects up to $ 275 million in capital spending this year, including investment to expand annual production capacity to 60,000 vehicles next year.