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Federal prosecutors are investigating the origins of Lordstown Motors’ electric vehicles, reviewing their earlier orders and merging last year with a private target company DiamondPeak Holdings.
The company disclosed the findings to the U.S. attorney general’s office in southern New York on Thursday in a lawsuit.
In March, a short-lived retailer Hindenburg Research criticized a Ohio-based manufacturer for upgrading pre-orders and exaggerating the potential of the technology used in his travel vehicle, Endurance.
The US Securities and Exchange Commission has always said so he sees the company for months and has sent two suppoenas. Thursday’s writing is the first confirmation from the company that there are any criminal cases.
“We are connected, and we will continue to work together, with this and all other questions related to government administration or inquiries,” Lordstown said.
Lordstown attracted international attention in 2019, when it said it would buy the plant that General Motors wanted to close in northeastern Ohio, an area where he suffered financially. The Detroit automaker lent a start-up $ 40m to buy.
As retail companies moved to electric vehicles, Lordstown was seen as a player who wanted to renovate the site.
But three months later Hindenburg Research published its report on the company, Lordstown he agreed that its pre-orders are for purchase.
“One company that issued a large number of pre-orders does not appear to have the resources to cover large car purchases,” the company said, while others “offered offers that appeared to be vague or weak to be included in the total number of uninvited applicants.”
But the manufacturer defended its expertise and timely production, arguing that Hindenburg Research’s criticism was incorrect.
In June, however, the company warned that it had no funds to start Endurance and that it was his business he may fail. In less than a week, the senior and chief financial officer resignation.
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