RIDE Stock Fell 3.94%: Why It Happened

By Amit Chowdhry ● July 17, 2021
  • The stock price of Lordstown Motors Corp (NASDAQ: RIDE) fell by 3.94% yesterday. This is why it happened.

The stock price of Lordstown Motors Corp (NASDAQ: RIDE) fell by 3.94% yesterday. One of the reasons why the stock price fell is because the company confirmed that the Justice Department is investigating its operations, including the SPAC deal taking the company public and the way it reports vehicle pre-orders. 

“We have in the past been and may in the future be subject to, or become a party to, litigation, regulatory actions, and government investigations and inquiries. For example, 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. We have cooperated, and will continue to cooperate, with these and any other regulatory or governmental investigations and inquiries,” said the company in an SEC filing.

Another catalyst affecting the stock price was a research report from an analyst. The shares of Lordstown Motors Corp (NASDAQ: RIDE) have received an $11 price target from BofA. And BofA analyst John Murphy reduced the price target from $13 while keeping a “Neutral” rating on the shares.

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