Lordstown Motors Corp. stock fell nearly 20% on Friday after short seller Hindenburg Research published a report on the electric-truck maker, accusing it of misleading investors and being a “mirage.”
Lordstown RIDE has misled investors “on both its demand and production capabilities,” Hindenburg said, citing conversations with former employees, business partners, and documents that showed “fictitious orders” and others that were non-binding agreements.
The report also cited an unnamed former employee saying that delays and design modifications are putting the vehicles Lordstown has promised to produce by September at least three to four years away from production. A recent road test ended up with the vehicle catching fire, it said.
Lordstown did not immediately return a request for comment. The five analysts covering the stock and surveyed by…