SEC to review Lordstown Motors' SPAC deal, vehicle preorders

SAN FRANCISCO/DETORIT -- The U.S. Securities and Exchange Commission has asked Lordstown Motors Corp. for information related to its merger with special-purpose acquisition company DiamondPeak Holdings and preorders of its vehicles, the electric pickup truck maker said Thursday.

"The Company is responding to the SEC's requests and intends to cooperate with its inquiry," Lordstown said in an SEC filing.

Lordstown CEO Steve Burns said this month the company had received the SEC request for information with regard to accusations by investment firm Hindenburg Research, but did not disclose details.

Hindenburg said it had taken a short position in Lordstown Motors, accusing the company of using “fake” orders to raise capital and claiming that its upcoming truck is three to four years away from production.

The securities regulator has opened an inquiry into Wall Street’s frenzy with special-purpose acquisition companies, and is seeking information on how underwriters are managing the risks involved, said four people with direct knowledge of the matter.

A flurry of electric vehicle makers have gone public via mergers with special-purpose acquisition companies, bypassing the rigorous scrutiny of a traditional initial public offering process and riding on Tesla Inc.'s share price rally.