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Lordstown Motors’ stock is down in Friday trade after The Wall Street Journal reported that the Justice Department is looking into the firm.
Thanks to Lordstown for allowing us to use their photos.
Electric-vehicle startup stock
Lordstown Motors is a company based in Lordstown, Ireland
In Friday trade, the dollar fell after The Wall Street Journal reported that the U.S. The company was being investigated by the Justice Department. In noon trade, shares of Lordstown (ticker: RIDE) are down 10%. The
The S&P 500 index
and
The Dow Jones Industrial Average (DJIA) is a stock market index
are up approximately 0.6 percent and 0.4 percent, respectively, in comparison.
Investors do not expect a probe, and Lordstown shareholders have already had a difficult time. Hindenburg Research has published a short-selling report on Lordstown. Furthermore, the business has revealed that the Securities and Exchange Commission has requested information on how it classifies pre-orders for its all-electric vehicle, named Endurance.
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Lordstown did not respond to a request for comment on the Journal piece right away. A request for comment from the Justice Department’s New York office was not immediately returned. Analysts on Wall Street haven’t helped the stock market either. Only one analyst out of eight, or 13%, now recommends Lordstown stock as a Buy, whereas three analysts were positive at the start of 2021. Furthermore, the average analyst price estimate has decreased from around $29 at the start of the year to around $7.40 now. The new average target price is nearly 20% lower than the current market price. Wall Street’s mood hasn’t improved as a result of the investigations. The company also claims that it requires further funding to attain commercialisation. Lordstown had hoped to begin selling tickets by the end of the year. Lordstown’s stock is down around 54% year to date, and it’s down almost 71% from a 52-week high of almost $32. Al Root can be reached at allen.root@dowjones.com./n
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