- Photo credits Lordstown Motors

Lordstown Motors lied about thousands of pre-orders for the Endurance

The company grossly overestimated the number of pre-orders

5w ago
8.3K

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 RodrΓ­guez, 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

Photo credits Lordstown Motors

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Comments (4)

  • So Matt Farah is correct, many of these EV start up companies are just scams.

      1 month ago
    • Exactly. See my comment. I hadn't even read yours nor Farrah's prior. Same page because that's exactly all it is.

        1 month ago
  • Pump and dump vaporware. They did this exact crap during the dot com boom hence the actual name of pump and dump vaporware. I can't stand this sort of stuff. Execs cash out knowing full well it's gonna crash. Make millions and laugh. They took money from people and never delivered anything. That's also known as a scam! Former execs need prison time. This shit makes me angry. I'm tired of seeing people walk away from disaster with dump truck loads of money. It's wrong. They know it too. Once the dollars are seen all sense goes out the window. I've seen this far too often now.

      1 month ago
  • At best a foolish endeavour, at worst another scam like Nicola Motor. Even the basic design doesn't function properly, making for a prototype that constantly fails, never mind any pre-production builds. This 'business' is already in it's second iteration and has virtually nothing to show for the multi-millions thrown at it. Now, that money had to go somewhere...

      1 month ago
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