Jun 2021

Lordstown Has No Binding Purchases

Lordstown Motors, which recently raised concerns about its ability to remain in business, said on Thursday it did not have any binding purchase orders or commitments from customers. This comes after President Rich Schmidt on Tuesday said at an Automotive Press Association event in Detroit the company had firm and binding orders for the first two years of production of its electric pickup truck.

“Although these vehicle purchase agreements provide us with a significant indicator of demand for the Endurance, these agreements do not represent binding purchase orders or other firm purchase commitments,” the company said in a filing with the U.S. securities regulator. On Monday, just days after the company said it may not have enough money to stay in business over the next year, CEO Steve Burns and CFO Julio Rodriguez resigned. These resignations came as the company acknowledged making statements about vehicle preorders that did not hold up to scrutiny, following an internal investigation into claims made by short-seller Hindenburg. Hindenburg, which took a short position in Lordstown shares, alleged the company had misled consumers and investors.