Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Electric truck startup Lordstown slumps 12% on SEC probe
Source: Reuters
AUTOS
MARCH 18, 2021 9:19 AM UPDATED 3 HOURS AGO
Electric truck startup Lordstown slumps 12% on SEC probe
By Sanjana Shivdas, Ankit Ajmera
3 MIN READ
(Reuters) - Lordstown Motors Corp shares plunged nearly 12% on Thursday after the electric pickup truck firm disclosed a regulatory inquiry over a short seller’s report claiming the company was using “fake” orders to raise capital.
The drop was the latest sign of a recent retreat in the once high flying electric vehicle sector, whose ranks have been swollen by the recent boom in special purpose acquisition companies, or SPACS.
Nikola, another electric pickup truck startup which has been attacked by the Hindenburg in the past, separately fell more than 7% hit by a key investor cutting its stake.
Lordstown and Nikola, which both went public via acquisitions by SPACS - shell companies that use their IPO proceeds to acquire private firms - are both down roughly 50% from their highs this year. Concern about technology, as well as rising yields, have weighed on the sector.
-snip-
MARCH 18, 2021 9:19 AM UPDATED 3 HOURS AGO
Electric truck startup Lordstown slumps 12% on SEC probe
By Sanjana Shivdas, Ankit Ajmera
3 MIN READ
(Reuters) - Lordstown Motors Corp shares plunged nearly 12% on Thursday after the electric pickup truck firm disclosed a regulatory inquiry over a short seller’s report claiming the company was using “fake” orders to raise capital.
The drop was the latest sign of a recent retreat in the once high flying electric vehicle sector, whose ranks have been swollen by the recent boom in special purpose acquisition companies, or SPACS.
Nikola, another electric pickup truck startup which has been attacked by the Hindenburg in the past, separately fell more than 7% hit by a key investor cutting its stake.
Lordstown and Nikola, which both went public via acquisitions by SPACS - shell companies that use their IPO proceeds to acquire private firms - are both down roughly 50% from their highs this year. Concern about technology, as well as rising yields, have weighed on the sector.
-snip-
Read more: https://www.reuters.com/article/us-nikola-lordstown-motors-shares/electric-truck-startup-lordstown-slumps-12-on-sec-probe-idUSKBN2BA1O8