TNI || New Delhi || 6th Nov 2021
The U.S Department of Justice is investigating electric van maker, Workhorse Group with regards to certain documents that have been reviewed by Wall Street Journal.
The focus of the enquiry is yet to be ascertained as nothing is revealed that’s inside the documents, however, after the report, the share price of the company went down by 10.4% to $6.47.
Workhorse is already being investigated by the U.S Securities and Exchange Commission, and the DoJ investigation undoubtedly adds to their woes. The exchange commission enquiry is because of a report published by a short seller a couple of months back.
During the same month when the short seller report was published, Workhorse, which is also an investor in Lordstown Motors, said that it will be suspending all its deliveries of flagship C-1000 electric vans.
The reason given was additional tests and modifications were required to ensure the vans complied with the regulatory standards.
The EV maker also said that two of its top executives from the management, which included the then finance boss Steve Schrader had quit the company and that the company had hired new people as part of a management revamp to take care of its commercial goals.