LORDSTOWN — Upstart Lordstown Motors Corp. has manufactured the first two beta prototypes of its battery-powered truck, the Endurance.
The company announced the milestone Wednesday, calling it a “testament to the hard work, skill and work ethic of the 500 Lordstown Motors associates,” according to a press release.
“They are critical to our success as we push ahead producing the rest of our 57 betas and dedicating our energies to beginning mass production this September,” the company stated.
Lordstown Motors announced earlier this month after the first beta prototypes are produced, it planned to produce one per day over the next two months. The betas will be used for crash, engineering and validation testing.
The achievement comes as the company defends itself against a class action lawsuit by investors alleging it gave misleading and false information about preorders for the Endurance and September launch date.
Two investors filed individual lawsuits in federal court. A judge Tuesday combined the lawsuits into one, at least for pretrial purposes, according to the court record. That ruling may extend to trial. The parties have till next week to object.
The company also finds itself complying with a probe by the U.S. Securities and Exchange Commission, which on Feb. 17 requested from Lordstown Motors documents related to its October merger with New York-based DiamondPeak Holdings Corp., a special purpose acquisition company.
Lordstown Motors released that detail and others related to the inquiry in its March 25 annual report. The commission also sought documents and information related to “Legacy Lordstown and pre-orders of vehicles,” according to the report.
DiamondPeak, a special purpose acquisition company, acquired Lordstown Motors last year with the purpose of taking the startup public. Stocks of the company began trading Oct. 26 on the Nasdaq exchange.
The deal was to inject $675 million into the company for production of its electric truck, the Endurance.
Lordstown Motors founder and CEO, Steve Burns, disclosed the SEC inquiry March 17 during the company’s first-ever earnings conference call. The company’s board of directors formed a special committee to review the matter.
The company also finds itself dealing with scathing short-sellers report from New York City-based Hindenburg Research alleging Lordstown Motors misled its investors regarding preorders and production schedule for its battery-powered truck. The report also characterized the company as a mirage.
The lawsuits followed the release the report by Hindenburg, well-known for short selling stocks.
The company’s stock crashed following the March 12 release of the report and has steadily fallen to close at a low of $11.34 per share Monday. It was up 1.6 percent Wednesday, closing at $11.77 per share.
rselak@tribtoday.com
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April 01, 2021 at 11:05AM
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