Lordstown faces several challenges, which are likely going to prevent the company from creating additional shareholder value in the long run.
There’s every reason to believe that Ford, along with other electric pickup manufacturers, will make it hard for Lordstown to succeed in the market.
I will continue to believe that it’s better to avoid Lordstown’s stock even at the current price.
Moreover, The Lordstown Motors Board of directors recently received the results from a special committee they had established to investigate the Hindenburg report. A leading global law firm, Sullivan & Cromwell LLP conducted the investigation. They found that the Hindenburg report was mostly false and misleading, especially related to the technology and timeline to start production but there were problems with periodic disclosures regarding pre-orders. Looks like the CFO and CEO fudged numbers and got caught and have reportedly resigned.
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