Notorious short seller Hindenburg Research is at it again. This time the target is Lordstown Motors Corp. (NASDAQ: RIDE).
In 2020, Hindenburg exposed alleged lies and fraud behind electric truck maker Nikola Corporation (NASDAQ: NKLA). NKLA stock peaked at $94 per share but has since fallen as low as $13.50.
The stories have many parallels. Both are companies that claim to manufacture and sell alternative energy trucks. Both went public through SPACs in 2020. And now both have been attacked by Hindenburg.
Lordstown’s CEO Steve Burns told Yahoo! Finance last month that the company had “pre-sold 100,000 of these vehicles to various fleets across America.”
But in the report, Hindenburg alleges that “the company’s orders are largely fictitious.”
One example provided by Hindenburg is a “14,000-truck deal from E Squared Energy, supposedly representing $735 million in sales.” But Hindenberg alleges that “E Squared is based out of a small residential apartment in Texas that doesn’t operate a vehicle fleet.”
It doesn’t appear that company insiders are strong believers in the stock, either.
According to the report, “executives and directors have unloaded ~$28 million in stock” since the company went public in October of 2020.
At writing on Friday afternoon, RIDE stock is trading near $14.63 per share — a drop of 16% and the stock’s lowest price since last November.
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