Lordstown CEO Hits Back at Hindenburg Report on Truck Orders

Lordstown Motors CEO Steve Burns publicly defended his company against a short-seller report alleging fraud and exaggerated pre-orders for its Endurance pickup truck [2]. The report by Hindenburg Research claimed the company misled investors about demand and production timelines [1], causing the stock to drop significantly [2]. Burns denied the allegations and maintained the company was on track for production [2].

Key takeaways

• Hindenburg Research claimed Lordstown exaggerated 100,000 reservations and was years behind schedule [1][2].
• CEO Steve Burns denied misrepresenting pre-orders and called critics "haters" during a press conference [2].
• Lordstown's stock fell following the report, and the SEC requested information regarding the claims [1][2].
• An independent investigation later found pre-order agreements were overstated to generate press [1].

CEO defends preorder numbers

Burns held a press conference at the Lordstown, Ohio, factory to address the report, telling reporters that the company was on target to begin production in September [2]. He stated that while the company uses consultants, it never misrepresented its preorder book as binding orders [2]. Quoting Taylor Swift, Burns dismissed the critics as "haters" and emphasized the significance of starting production on the "world's first electric pickup truck" [2]. He also announced that beta vehicles were arriving in 10 days [2].

Short-seller claims spark regulatory scrutiny

Hindenburg Research alleged that the 100,000 reservations for the Endurance truck were non-binding indications of interest from companies without the financial means to fulfill them [1][2]. The report also claimed the company was three to four years behind schedule [1][2]. Following the publication, Lordstown's stock dropped 17% [1], and the U.S. Securities and Exchange Commission requested information regarding the claims [1]. An independent board investigation later confirmed that pre-order agreements were overstated in number and seriousness to generate press coverage [1].

Why it matters

The dispute marked a turning point for the automaker, which eventually filed for Chapter 11 bankruptcy protection in June 2023 [1]. The company emerged from restructuring as Nu Ride Inc. in March 2024, though the assets related to the Endurance truck were sold to a firm owned by founder Steve Burns [1].