🚙 Lordstown Motors, unjuiced

Hold the hard seltzers... Summer isn't starting off well for Lordstown Motors. The e-truck startup went public via SPAC merger in October, and has been teasing its much-hyped "Endurance" electric pickup since last June. Those were better days for Lordstown.

• Last week: Lordstown said it doesn’t have enough cash to start commercial production (it hasn't sold a truck yet), and warned it has “substantial doubt” about its ability to survive the next year.
• Yesterday: Lordstown's CEO and CFO resigned (not encouraging), and the stock plunged 19%.

The "I told you so" award goes to... Hindenburg Research. It's the same short-selling firm that dropped a 67-page report accusing Nikola of exaggerating the readiness of its e-truck tech, calling it "an intricate fraud" (see: truck-rolling-down-a-hill commercial). Nikola's CEO resigned soon after, and the stock has fallen 40% since.

• In March, Hindenburg released a report alleging Lordstown misled investors by exaggerating its production readiness and biz potential.
• In January, Lordstown said the Endurance pickup already had 100K nonbinding preorders. Hindenburg did some digging and concluded those were “largely fictitious.” For example: Hindenburg found that companies without commercial fleets had preordered 1K trucks.
• The TLDR: Hindenburg believes Lordstown used “fake” orders to raise cash, and said its pickup was years away from production. Lordstown still says that it could start production by September.

Friends Reunion vibes... G7 countries have been getting cozy lately. The Group of Seven = the US, UK, Canada, France, Germany, Italy, and Japan. This month, G7 leaders schmoozed over tea at a London summit — and agreed on backing a 15% global minimum corporate tax rate. France decided to ship another Statue of Liberty to the US as a gift of friendship (#aw). Now, the G7 is bonding over a global infrastructure initiative:

• Build Back Better World: Doesn't exactly roll off the tongue. The G7 announced the initiative on Sunday, inspired by Biden’s "Build Back Better" plan for the US.
• Global ambitions: You can tell by the addition of "World" at the end. G7 nations would help finance infrastructure projects in developing countries. Think: roads, bridges, and clean energy infrastructure.
• German Chancellor Angela Merkel: "For countries in need of development, only concrete projects count.” Pun intended?

Rare bipartisan support topics ... Extra vacation days, and countering China’s power (it's a theme). With Build Back Better World, the G7 hopes to rival China's multi-trillion-dollar "Belt and Road" initiative. China’s ambitious program aims to build physical and digital infrastructure connecting hundreds of countries. It's a way for China to expand its global influence. BBBW is a way for the US and friends to counter that.

• Vax: American biotech Novavax said its Covid vaccine was 90% effective in large trials in the US and Mexico, including against newer variants.
• Shots: Companies including Goldman Sachs and Morgan Stanley are pushing employees to prove they're vaxed as offices reopen.
• Data: The US is ratcheting up pressure on China's 5G ambitions, offering financial incentives to countries willing to pass on Chinese-made tech.
• Revenge: American Express' CEO said that travel and dining spending is nearing full recovery.
• Flated: JPMorgan Chase's CEO said the bank is stockpiling cash because there's a "very good chance" that inflation will be around for a while.

• Earnings expected from Oracle, H&R Block, and La-Z-Boy

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