Lordstown made misstatements about its vehicle preorders, an investigation by the electric truck company's board concluded.
Lordstown Motors Corp.'s shine dimmed further Monday as the electric truck startup’s two top executives stepped down after the company’s board found evidence of inaccurate statements. The onetime star special purpose acquisition company’s stock took its biggest one-day drop ever.
Shares of the company sank 19% to $9.26 — the lowest in almost three weeks. The stock is down 54% this year and more than 70% below the closing high of $31.40 it reached in September.It may come under further selling pressure from “potential stock disposals” by Burns, who is the single largest shareholder with a 26.5% stake, Adam Jonas, an analyst at Morgan Stanley who recently pulled his rating on Lordstown, wrote in a research note.
It also found that some of the preorders were placed by ostensible buyers unlikely to have the resources to complete the orders or whose commitments were “too vague or infirm to be appropriately included in the total number of preorders disclosed.”Lordstown’s claim that it had 100,000 preorders for its truck “fictitious.”
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