Justice Department Begins Probe Into Lordstown Motors Claims Report
Lordstown Motors has found itself at the center of controversy after its CEO made false claims about preorders for its pickups. The false claims eventually led to the CEO and CFO of the company resigning. In the wake of the misinformation, a new report has surfaced that claims the Justice Department is currently probing Lordstown Motors.
According to a person who claims to be familiar with the probe, Lordstown is being investigated by the US Justice Department concerning the claim that the company exaggerated the potential sales of its electric Endurance pickup. According to the source, the investigation is currently in its early stages and is being handled by the US Attorney's office in Manhattan.
The new probe is allegedly related to a previous inquiry into Lordstown operations conducted by the Securities and Exchange Commission. The investigations come in the wake of the former CEO, and CFO of the company being fired after Lordstown's board found the duo had misstated preorders for the truck.
The automaker has issued a statement saying that it is cooperating with any regulatory or governmental investigations and inquiries. Reports of the investigation have sent shares of the fledgling electric vehicle maker down in trading by 12 percent. The stock has lost 48 percent of its value this year.
Lordstown is one of several new startups aiming to build fully electric vehicles. It's notable for having purchased an old GM manufacturing facility in Ohio to produce its electric trucks. The company had targeted September to get its electric vehicle into production. Competition in the electric vehicle segment is increasing drastically. Extremely popular and old automakers are getting into the electric vehicle game heavily, including Ford with its all-electric F-150 lightning. Ford has the most popular vehicle in America and the most popular truck with its F-150. Presumably, many will turn to the popular truck for their first fully electric pickup.