Electric vehicle maker Lordstown Motors (RIDE) has seen its share price slump 57.4% year-to-date because of investor anxiety about ongoing federal investigations and several lawsuits against it. Given the series of mishaps the company has been experiencing lately, the question is, can the stock rebound anytime soon? Read on.Electric vehicle (EV) maker Lordstown Motors Corp. (RIDE) develops and manufactures Endurance, a full-size electric pickup truck for sale to fleet customers. RIDE went public last year through a merger with a special purpose acquisition company, DiamondPeak Holdings. However, shares of the electric truck maker have declined 4.5% over the past five days after the company confirmed that the U.S. Department of Justice is investigating matters related to its SPAC merger deal last year and the reporting of its pickup truck preorders. The company is headquartered in Lordstown, Ohio.
Moreover, RIDE’s shares have slumped 57.4% so far this year. This decline can be attributed primarily to investors’ concern surrounding the lawsuits the company is facing just when it is about to launch its pickup truck, the Endurance.
RIDE’s stock is currently trading 73.1% below its $31.8 all-time high. In addition to the ongoing probe and lawsuits, the company’s recent statement that it does not have sufficient funding to begin producing its electric truck at scale could worsen matters. Given these circumstances, we think the stock could suffer further declines in the near term.