Shares of Lordstown Motors Corp fell as significantly as 23% on Friday following Hindenburg Study took a limited placement on the electric powered-pickup-truck maker’s stock.

“Lordstown is an electric powered car or truck SPAC with no revenue and no sellable products, which we feel has misled investors on both its demand from customers and production capabilities,” Hindenburg stated.

Lordstown claimed in January it had acquired extra than 100,000 non-binding production reservations from commercial fleets for its electric truck.

“Our discussions with former personnel, organization companions and an comprehensive document critique display that the firm’s orders are mostly fictitious and utilised as a prop to elevate money and confer legitimacy,” Hindenburg stated on Friday.

Steve Burns, CEO of Lordstown, mentioned in a textual content information to Bloomberg that “we generally stated that pre-orders were being non-binding. That is what pre-orders are.”

Burns denied the allegations manufactured in Hindenburg’s report. Lordstown stated it will offer a comprehensive response in coming days, in all probability at its March 17 earnings report, its first as a public organization.

In response to an assertion made in the report that creation is 3 to four yrs off, Burns said: “We are on observe for betas this month and get started of output in September. Any statement to the opposite is a lie.”

The shorter seller also took goal at Nikola Corp in September, accusing the electric-truck maker of fraud, foremost to the resignation of its founder, Trevor Milton. Nikola had publicly rejected all accusations.

In February, even so, Nikola disclosed that the corporation and Milton had manufactured numerous statements that had been partly or wholly inaccurate, immediately after an inside critique.

Next Hindenburg’s accusations, Basic Motors and Nikola in November declared a reworked arrangement on a gasoline-cell partnership, allowing for the automaker to back again out of taking a proposed fairness stake in the startup.

Lordstown‘s shares shut down 16.5% at $14.78.