Lordstown Motors lied about thousands of pre-orders for the Endurance
The company grossly overestimated the number of pre-orders
The future of Lordstown Motors looks bleak as the bad news continues to roll in. After the resignation of CEO Steve Burns and Chief Financial Officer Julio Rodríguez, an investigation by the Securities and Exchange Commission has revealed substantial fraud in the number of pre-orders for the electric pickup truck.
This complicates the already delicate situation in which Lordstown Motors finds itself. Two days after Burns' resignation, Rich Schmidt, the new president of Lordstown Motors, claimed that the thousands of pre-orders were real, probably in order to reassure investors.
The embarrassing SEC report completes the shocking announcement of the financial investigation agency Hindenburg Research. Hindenburg Research had said in March that the carmaker had lied about the state of development of the Endurance, while overstating the vehicle's technical capabilities.
Burns also said shortly afterwards that the Ohio-based startup lacked the funds to continue production of the Endurance. With all these obstacles, it is almost certain that Lordstown Motors will disappear in the coming months if no investor is serious about taking over the business.
Photo credits Lordstown Motors