Electric truck start-up Lordstown Motors (RIDE 7.50%) has had a rough month after being hit with a short-seller report and subsequent Securities and Exchange Commission investigation. Now add on a black eye over the weekend after failing to finish a highly touted off-road truck race. Lordstown shares are trading down about 10.3% today, as of noon EDT.
The company had been promoting the entry of its all-electric Endurance pickup truck in the San Felipe 250 race that was run in Baja California, Mexico, on Saturday. But the truck didn't cross the finish line, only logging about 40 miles of the race. No details were released on the reason for the withdrawal.
Even with the company calling the event a test and a learning experience, investor sentiment today is likely being impacted by the disappointing publicity on a day when several electric vehicle names are also moving lower.
The company put a positive spin on the off-road race result. It said in a Twitter (TWTR 0.39%) post that the race "provided the opportunity for us to push the envelope of what's possible. We're incredibly proud to have entered & competed, and for the validating feedback we obtained on so many aspects of the vehicle."
The company also stressed that its hub motors, battery pack, and software performed well in "demanding and treacherous conditions." Lordstown's reputation came under fire a month ago when short-seller Hindenburg Research made allegations about its pre-order data, production timeline, and truck performance.
As with all pre-revenue start-up businesses, the stock remains speculative, and investors should expect heightened volatility for some time to come.