Lordstown Motors says it has no binding purchase orders from customers

Reuters2021-06-17

June 17 (Reuters) - 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.

The U-turn 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.

Shares of the company were down 5.3% in premarket trading.

On Monday, just days after the company said it may not have enough money to stay in business over the next year, Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez resigned.

The resignations followed the company's reports of conclusions from an internal investigation into claims made by short-seller Hindenburg. Hindenburg, which took a short position on Lordstown shares in March, alleged that the company had misled consumers and investors.

Although, Lordstown declined Hindenburg's accusations of overstating the viability of its technology and misleading investors about production plans, it has acknowledged that it overstated the quality of pre-orders for its electric truck.

In a filing on Thursday, the company said it pushed its annual meeting of stockholders until Aug. 19 from June 17.

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