Why Lordstown Motors Stock Crashed Today
The stock of Lordstown Motors (NASDAQ: RIDE) has been on the decline since a short-seller report from Hindenburg Research in mid-March questioned the legitimacy of several aspects of the business. That almost 40% drop has now been extended after the electric truck start-up reported its first-quarter 2021 financial update late Monday. As of 9:50 a.m. EDT today, Lordstown shares were down more than 15% versus Monday's closing price.
The company told investors that production will in fact begin on schedule in the fourth quarter of 2021, but volume this year would be "at best" 50% of previous estimates. In addition, the company said it is seeking to raise more capital to fund its start-up plans.
Source Fool.com
