The Securities and Exchange Commission is investigating GM-backed electric vehicle startup Lordstown Motors after it was accused of misreporting its progress. On March 12, short-selling firm Hindenburg Research published a report alleging Lordstwon's biggest pre-orders were from companies that don't have the funds to purchase large volumes of its electric pickup truck, which has a starting price of $50,000.
- Hindenburg — which has a short position in Lordstown — accused the EV startup of misleading investors and the government about its progress on prototypes of its Endurance electric pickup truck, which recently caught fire.
- Lordstown said it was cooperating with the investigation and has established a special committee to review the allegations.
- CEO Steve Burns said the report was "full of half-truths and lies." The company remains committed to begin delivering the Endurance truck in September.
- Lordstown went public via a SPAC in December and raised $675M. Its share price fell by 13.8% following the news of the investigation.