U.S. SEC opens investigation into electric vehicle company Workhorse Group – WSJ

September 1 (Reuters) – The United States Securities and Exchange Commission (SEC) has opened an investigation into electric vehicle maker Workhorse Group Inc (WKHS.O), an early investor in Lordstown Motors Corp (RIDE.O) , The Wall Street Journal reported on Wednesday.

The securities regulator revealed in a letter that its enforcement division was investigating Workhorse, according to the report, adding that the letter did not mention the subject of the investigation and offered no further details.

Workhorse and the SEC did not immediately respond to requests for comment from Reuters.

Workhorse challenged in June a decision by the U.S. Postal Service earlier this year to award a 10-year, multibillion-dollar contract to Oshkosh Defense to manufacture a new generation of postal delivery vehicles. Read more

Lordstown announced a few months ago the sudden departure of its founder and former boss, Steve Burns, after an internal investigation into claims by short seller Hindenburg Research that the startup overestimated the viability of its technology and tricked investors into error on production plans. Read more

Burns was also the former CEO of Workhorse.

Lordstown has also come under scrutiny from federal prosecutors in Manhattan and the SEC over its merger with a blank check company and has already made statements about preorders of its vehicles.

The SEC and U.S. prosecutors in July accused Trevor Milton, the former CEO of EV Nikola Corp (NKLA.O), of defrauding investors by lying to them about the company. Read more

Report by Akanksha Rana in Bengaluru and Ben Klayman; Editing by Vinay Dwivedi and Aditya Soni

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