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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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Tesla adjusts Online Design Studio for easier trade-in process

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

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(Credit: Tesla Asia | X)

Tesla has adjusted its Online Design Studio to make for an easier trade-in process, reflecting the details of the exchange for a more accurate reflection of payment terms.

Tesla has a great trade-in program that allows you to give the company your vehicle in exchange for cash, even if it’s not an EV. Their trades are mostly fair, but the company seems to undervalue its own vehicles, and there have been plenty of complaints over offers in the past.

Trade-ins are usually given by submitting vehicle details, then Tesla sends an email with an offer. Offers are non-negotiable, but do adjust over time, although the latest offer is valid for 30 days.

I traded my ICE vehicle for a Tesla Model Y: here’s how it went

Knowing your new Tesla’s cash price, leasing or loan details, and monthly payment information used to be done by the car buyer. From personal experience, I simply subtracted my trade-in from the cash price of the Tesla Model Y, and I plugged those numbers into the payment calculator.

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Now, Tesla is implementing the trade-in process directly into the Design Studio. It will adjust the price of the car and the different monthly payment methods automatically:

The change is already noticed in a handful of states, including California, but it has not rolled out across the board quite yet. It will be implemented in all of the U.S., as well as Canada, this coming week.

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The trade-in process is very simple, and after you accept your offer, you simply drop your vehicle off during the delivery process. Making this simple change will be greatly appreciated by owners.

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Tesla confirms Robotaxi is heading to five new cities in the U.S.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

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Credit: Tesla

Tesla Robotaxi will hit five new cities in the United States in the coming months, the company confirmed.

After launching in Austin, Texas, in late June and the Bay Area of California just a few weeks later, Tesla has been attempting to expand its Robotaxi suite to new states and cities in the U.S., and even outside of the country.

The Robotaxi suite is a ride-hailing service Tesla offers, but the details of it change with each jurisdiction, as regulations vary. For example, in Austin, Tesla can operate the Robotaxi suite without anyone in the driver’s seat, as long as the vehicle does not enter a freeway.

Credit: Tesla

In the Bay Area, a Safety Monitor rides in the driver’s seat, essentially acting as the vehicle operator with Full Self-Driving controlling the car.

The local regulations and how Tesla handles them will continue to be a relevant part of the discussion, especially as the company aims to expand the Robotaxi program to different areas. This has been a primary focus of the company for several months, especially within the United States.

CEO Elon Musk said that Tesla was aiming to launch Robotaxi in Nevada, Arizona, and Florida. However, the company detailed five specific cities where it will launch Robotaxi next during the Annual Shareholder Meeting on Thursday.

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Tesla will launch Robotaxi in Las Vegas, Phoenix, Dallas, Houston, and Miami next, broadening its Service Area for the suite to more major cities across the U.S.

It has said it plans to offer the service to half of the U.S. population by the end of the year, but it does not seem as if it will expand to more than a handful of cities this year, which is still tremendous progress, all things considered.

As far as autonomy is concerned, Tesla has always had lofty expectations and has made some even loftier statements.

At the Shareholder Meeting, Musk said that the company would likely be able to enable vehicle owners to text while the vehicle drives, alleviating them from potentially having some of the responsibility they have behind the wheel.

Tesla says texting and driving capability is coming ‘in a month or two’

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It is not confirmed that Tesla will roll this out in the next few months, but Musk said there is a possibility.

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Tesla launches another new Model Y trim at a bargain price with massive range

It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.

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Credit: Tesla

Tesla has launched yet another new Model Y trim level, but this time it is in China, and it is at a bargain price.

It also has an insane range rating.

On Friday, Tesla launched the new Model Y Long Range Rear-Wheel-Drive in China, priced at 288,500 yuan ($40,500), an incredible deal considering it is not a stripped-down version of the vehicle like the Model Y Standard.

It is the second most-affordable Model Y trim level in China, trailing the base Rear-Wheel-Drive and coming in under the All-Wheel-Drive.

The big appeal with this new Model Y trim is obviously its price, but its range rating is also one of the best we’ve seen. Rated at 821 kilometers on the CLTC scale, it converts to 510 miles. It uses a 78.4 kWh CATL battery.

Converted to real-world range, however, that 821-kilometer range rated by the CLTC actually is equivalent to about 357 miles on the EPA scale, which is still a very respectable number and comes in at a higher range than the Long Range All-Wheel-Drive configuration that is available in the U.S.

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Tesla has truly brought a wide variety of Model Y trims to the Chinese market, including a new Model Y L configuration that features a slightly longer wheelbase, as well as additional interior features like extended thigh legrests and captain’s chairs with armrests.

It is unclear whether Tesla will bring a Premium Rear-Wheel-Drive option of the Model Y to the U.S., especially as it has already rolled out four configurations of the all-electric crossover in the market. With the new Standard offerings, Tesla will likely keep its lineup as simple as possible.

However, the company has hinted that there is a slim possibility the Model Y L could come to the U.S. sometime late next year, but CEO Elon Musk said that it is not a guarantee.

Tesla is more concerned with self-driving efforts in the U.S., and despite calls from customers for larger vehicles, it does not seem concerned with making them available, at least not for now.

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