Lordstown now says it has no binding purchase orders from customers

Lordstown Motors, which recently raised concerns about its ability to remain in business, said on Thursday it did not have any binding purchase orders or commitments from customers.

The U-turn comes after President Rich Schmidt on Tuesday said at an Automotive Press Association event in Detroit the company had firm and binding orders for the first two years of production of its electric pickup truck.

“Although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments,” the company said in a filing with the U.S. securities regulator.

Shares of the company fell 4.4 percent to close at $10.31 in New York.

On Monday, just days after the company said it may not have enough money to stay in business over the next year, CEO Steve Burns and CFO Julio Rodriguez resigned.

The resignations came as the company acknowledged making statements about vehicle preorders that did not hold up to scrutiny, following an internal investigation into claims made by short-seller Hindenburg. Hindenburg, which took a short position in Lordstown shares, alleged the company had misled consumers and investors.

In a filing on Thursday, the company said it pushed back its annual shareholders meeting to Aug. 19 from June 17.

Separately, the company said in a news release Thursday that it had hired former General Motors executive John Whitcomb to “develop the strategic business model for Lordstown Motors’ sales and service footprint.” He will assume the newly created role of vice president global commercial operations effective June 21.

Automotive News contributed to this report.

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