- Lordstown Motors tumbled as much as 12% on Thursday after the electric-vehicle start-up said the SEC is inquiring into the company.
- Lordstown received requests for information from the SEC regarding a report from Hindenburg that accused the company of misleading investors.
- EV peer Nikola also fell 8% at intraday lows on Thursday after a key strategic partner said it plans to sell half of its stake in the company.
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Shares of Lordstown Motors fell as much as 12% to $13.30 after the electric vehicle start-up told investors that it’s dealing with allegations from US regulators.
In the company’s earnings call Wednesday, CEO Steve Burns said Lordstown received “requests for information” from the SEC regarding a report from short-seller Hindenburg Research that accused the company of misleading investors.
Lordstown has appointed an internal committee to review the short-seller’s claims, Burns said, adding that the company would not be able to share any more information until the group completes its audit.
Last week, Hindenburg said it had taken a short position in the Lordstown Motors after determining that it has “no revenue and no sellable product.” The news of that report sank shares 23% in one day.
Shares of Lordstown are now down roughly 28% since the EV start-up’s public debut via SPAC in October.
Thursday also saw electric-vehicle peer Nikola face losses. Nikola fell as much as 7.7% as investors learned that a key strategic partner—South Korea’s Hanwha Group—plans to sell 50% of its current stake in Nikola, according to a securities filing.
Hindenburg also targeted Nikola in September, accusing Nikola and its founder, Trevor Milton, of fraud. The report triggered an SEC inquiry and Milton ultimately departed the company and a major deal with GM fell through.
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