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Lordstown Motors under SEC investigation for false pre-orders, DiamondPeak merger

Credit: Twitter | LordstownMotors

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Lordstown Motors is under federal investigation by the Securities and Exchange Commission (SEC) for falsifying pre-order counts and its merger with DiamondPeak Holdings, company representatives said.

Earlier this month, the SEC issued a post-effective amendment No. 2 to an S-1 registration statement, requesting more information and documentation that could prove Lordstown’s claimed pre-order counts.

“We have received two subpoenas from the SEC for the production of documents and information, including relating to the Merger between DiamondPeak and Legacy Lordstown and pre-orders of vehicles, and we have been informed by the U.S. Attorney’s Office for the Southern District of New York that it is investigating these matters,” Lordstown Motors said.

In February, CEO Steve Burns said that Lordstown had accumulated 100,000 pre-orders for the Endurance pickup. With specs like 250 miles of range, 600 horsepower, and 7,500 pounds of towing capacity for $52,500, 100,000 vehicle orders seemed lofty, especially with competitors like the Tesla Cybertruck, Rivian R1T, and Ford F-150 Lightning offering very competitive all-electric pickups with multiple variants.

However, a March report from Hindenburg Research indicated that this was an exaggeration. The report revealed several claims about Lordstown’s claimed 100,000 pre-orders, including statements from companies who indicated that the orders were “non-binding.” Additionally, an examination of documents and interviews with employees and business partners revealed that these statements were used “as a prop to raise capital and confer legitimacy,” Hindenburg said.

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The pre-orders were valued at $1.4 billion, according to Reuters.

2021 has not been a friendly year for the Ohio-based electric car startup. Earlier this year, the company revealed that it was struggling with cash flow and that there was “substantial doubt” that operation could continue over the course of the next twelve months. CEO Burns and CFO Julio Rodriguez were ultimately relieved from their duties. The company appointed Becky Roof to Interim CFO and Angela Strand to Executive Chairwoman.

Elon Musk shares update on SNL appearance, says everyone is being friendly

Lordstown Motors said in a statement:

“Lordstown Motors Corp. a leader in electric light-duty trucks focused on the commercial fleet market, today announced several changes to its executive management team as the Company begins to transition from the R&D and early production phase to the commercial production phase of its business. To that end, Lordstown Motors Lead Independent Director Angela Strand has been appointed Executive Chairwoman of the Company, and will oversee the organization’s transition until a permanent CEO is identified, and Becky Roof, will serve as Interim Chief Financial Officer. Steve Burns has resigned as Chief Executive Officer and from the Company’s Board of Directors, and Chief Financial Officer Julio Rodriguez has also resigned. All changes are effective immediately and the Company has engaged an executive search firm to identify a permanent CEO and CFO.”

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During this statement, the company also revealed it had no binding orders with any company, entity, or individual, clarifying the statements that former CEO Burns made in February.

 

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk confirms Tesla FSD V14.2 will see widespread rollout

Musk shared the news in a post on social media platform X.

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Credit: Whole Mars Catalog/X

Elon Musk has confirmed that Tesla will be implementing a wide rollout of Full Self-Driving (FSD) V14 with the system’s V14.2 update. Musk shared the news in a post on social media platform X. 

FSD V14.1.2 earns strong praise from testers

Musk’s comment came as a response to Tesla owner and longtime FSD tester AI DRIVR, who noted that it might be time to release Full Self-Driving to the fleet because V14.1.2 has already become very refined.

“95% of the indecisive lane changes and braking have been fixed in FSD 14.1.2. I haven’t touched my steering wheel in two days. I think it’s time, Tesla AI,” the longtime FSD tester wrote

AI DRIVR’s comment received quite a bit of support from fellow Tesla drivers, some of whom noted that the improvements that were implemented in V14.1.2 are substantial. Others also agreed that it’s time for FSD to see a wide release.

In his reply to the FSD tester, CEO Elon Musk noted that FSD V14’s wide release would happen with V14.2. “14.2 for widespread use,” Musk wrote in his reply

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Mad Max mode makes headlines

One of the key features that was introduced with FSD’s current iteration is Mad Max mode, which allows for higher speeds and more frequent lane changes than the previous “Hurry” mode. Videos and social media posts from FSD testers have shown the system deftly handling complex traffic, merging seamlessly, and maintaining an assertive but safe driving behavior with Mad Max mode engaged.

Tesla AI head Ashok Elluswamy recently noted in a post on X that Mad Max mode was built to handle congested daytime traffic, making it extremely useful for drivers who tend to find themselves in heavy roads during their daily commutes. With Musk now hinting that FSD V14.2 will go on wide release, it might only be a matter of time before the larger Tesla fleet gets to experience the notable improvements of FSD’s V14 update.

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Multiple Tesla Cybercab units spotted at Giga Texas crash test facility

The vehicles were covered, but one could easily recognize the Cybercab’s sleek lines and compact size.

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Credit: @JoeTegtmeyer/X

It appears that Tesla is ramping up its activities surrounding the development and likely initial production of the Cybercab at Giga Texas. This was, at least, hinted at in a recent drone flyover of the massive electric vehicle production facility in Austin. 

Cybercab sightings fuel speculations

As observed by longtime Giga Texas drone operator Joe Tegtmeyer, Tesla had several covered Cybercab units outside the facility’s crash testing facility at the time of his recent flyover. The vehicles were covered, but one could easily recognize the Cybercab’s sleek lines and compact size. Tegtmeyer also observed during his flyover that production of the Model Y Standard seems to be hitting its pace.

The drone operator noted that the seven covered Cybercabs might be older prototypes being decommissioned or new units awaiting crash tests. Either scenario points to a ramp-up in Cybercab activity at Giga Texas, however. “In either case, this is another datapoint indicating production is getting closer to happening,” Tegtmeyer wrote on X, highlighting that the autonomous two-seaters were quite exciting to see.

Cybercab production targets

This latest sighting follows reports of renewed Cybercab appearances at both the Fremont Factory and Giga Texas. A test unit was recently spotted driving on Giga Texas’ South River Road. Another Cybercab, seen at Tesla’s Fremont Factory, appeared to be manually driven, suggesting that the vehicle’s current prototypes may still be produced with temporary steering controls.

The Tesla Cybercab is designed to be the company’s highest-volume vehicle, with CEO Elon Musk estimating that the autonomous two-seater should see an annual production rate of about 2 million units per year. To accomplish this, Tesla will be building the Cybercab using its “Unboxed” process, which should help the vehicle’s production line achieve outputs that are more akin to consumer electronics production lines.

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Teslas in the Boring Co. Vegas Loop are about to get a big change

Elon Musk has a big update for Teslas that operate within the Boring Company’s Vegas Loop.

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the boring company's vegas loop entrance
(Credit: Sam Morris, LVCVA/Las Vegas News Bureau)

Tesla vehicles operating in the Boring Company’s Vegas Loop are about to get a big change, CEO Elon Musk said.

In Las Vegas, the Boring Company operates the Vegas Loop, an underground tunnel system that uses Teslas to drop people off at various hotspots on the strip. It’s been active for a few years now and is expanding to other resorts, hotels, and destinations.

Currently, there are stops at three resorts: Westgate, the Encore, and Resorts World. However, there will eventually be “over 100 stations and span over 68 miles of tunnel,” the Vegas Loop website says.

The Loop utilizes Tesla Model 3 and Model Y vehicles to send passengers to their desired destinations. They are currently driven using the Full Self-Driving suite, but they also have safety drivers in each vehicle to ensure safety.

Tesla Cybertruck rides are crucial for Vegas Loop expansion to airport

Tesla and the Boring Company have been working to remove drivers from the vehicles used in the Loop, but now, it appears there is a set timeline to have them out, according to CEO Elon Musk:

Musk says the Boring Co. will no longer rely on safety drivers within the Teslas for operation. Instead, Tesla will look to remove the safety drivers from the cars within the next month or two, a similar timeline for what Musk believes the Robotaxi platform will look like in Austin.

In Texas, as Robotaxi continues to operate as it has since June, there are still safety monitors within the car who sit in the passenger’s seat. They are there to ensure a safe experience for riders.

When the route takes the vehicle on the highway, safety monitors move into the driver’s seat.

However, Tesla wants to be able to remove safety monitors from its vehicles in Austin by the end of the year, Musk has said recently.

In early September, Musk said that the safety monitors are “just there for the first few months to be extra safe.” He then added that there “should be no safety driver by end of year.”

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