SEC Charges Lordstown Motors With Misleading Investors About Flagship EV
Portfolio Pulse from Benzinga Newsdesk
The SEC has charged Lordstown Motors with misleading investors by exaggerating the demand for its flagship EV, the Endurance. Despite claiming over 100,000 pre-orders, many were from companies without fleets or intent to purchase. Lordstown, which went public via a SPAC merger in 2020, filed for bankruptcy in 2023.
February 29, 2024 | 10:43 pm
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Lordstown Motors, now trading as RIDEQ, has been charged by the SEC for misleading investors about the demand for its Endurance EV, significantly overestimating pre-order numbers.
The SEC's charges against Lordstown Motors for misleading investors directly impact the company's credibility and could further erode investor trust, especially significant as the company is already navigating bankruptcy. This negative publicity and regulatory scrutiny are likely to exert downward pressure on RIDEQ's stock price in the short term.
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