Shares of electric vehicle maker Lordstown Motors fall on SEC look at short-seller claims

In a statement, Burns said demand for the Endurance pickup truck has exceeded expectations. Given the greater interest, Lordstown is accelerating development of an electric van for commercial customers, with a target of starting production in the second half of 2022.

The company had $630 million in cash at the end of the year. With projected capital expenditures of $250 million to $275 million in 2021, and $220 million to $235 million in operating costs and R&D, Lordstown expects to finish this year with at least $200 million in cash. The company is applying for a loan from the U.S. Department of Energy under the Advanced Technology Vehicles Manufacturing program.

Lordstown had said earlier this week that it would address the allegations “in due time.”

Burns didn’t address accusations that he was pushed out as CEO of Workhorse Group Inc. Workhorse, which owns a stake in Lordstown, is developing an electric delivery van.

In its report, Hindenburg said Lordstown is a company “with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities.” The firm holds a short position in Lordstown and stands to gain from a drop in the shares.

The company has been upfront about not having revenue from vehicle sales and is spending cash getting its truck into production.

Hindenburg targeted another EV startup, Nikola Corp., in September claiming the company misled investors. That report similarly sparked a sell-off in shares of Nikola, triggered a SEC probe and ultimately prompted a disclosure from the company confirming some of the allegations.