Lordstown Motors drops after report that the EV maker is the target of a probe by the Justice Department

• Lordstown Motors dropped sharply after a Wall Street Journal report that the EV maker is the target of a DOJ probe. 
• The Journal did not specify further details about the nature of the probe. 
• Shares of Lordstown fell as much as 17% to $8.56. Trading was halted after the report. 

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Lordstown Motors dropped as much as 17% to $8.56 a share after the Wall Street Journal reported the electric vehicle-maker is the target of a probe from the US Department of Justice. 

The US attorney's office in Manhattan is handling the Lordstown inquiry, the Journal said, citing people familiar with the matter. The report did not disclose further details regarding the DOJ probe.

Trading was halted a minute after the WSJ report and resumed five minutes later. 

Shares of Lordstown Motors have plunged roughly 50% since the electric vehicle company went public via a SPAC in October. 

In March, short seller Hindenburg Research published allegations that Lordstown had fabricated preorder numbers for its electric truck to generate hype.

The US Securities and Exchange Commission first requested information from Lordstown in February and has issued subpoenas regarding the company's move to go public and its representations about preorders. Lordstown Motors has said it is cooperating with the SEC's investigation.

Markets Insider