What's Going On With Lordstown Motors Stock Today

Lordstown Motors Corp RIDE stock plunged Tuesday following the reverse stock split announcement.
The original equipment manufacturer of electric vehicles announced that it would effect a 1:15 reverse stock split of its Class A common stock effective May 24, 2023.
Lordstown Motors' Class A common stock will begin trading on a split-adjusted basis on the Nasdaq under its existing symbol, "RIDE," when the market opens on May 24, 2023.
The reverse stock split helps improve the Class A common stock marketability and liquidity. A higher market price can make the Class A common stock more attractive to a broader range of institutional investors, professional investors, and other members of the investing public.
In addition, the reverse stock split helps to increase the per share market price of the Class A common stock to satisfy Nasdaq's $1.00 minimum bid price requirement.
The stock has plunged 73.5% YTD and 13% last week.
In May, Lordstown shared plans to shelve the production of its Endurance electric full-size pickup truck shortly, given the lack of investment and production delays.
Lordstown warned that it might have to file bankruptcy after Hon Hai Precision Industry Co Ltd (OTC: HNHPF) affiliate Foxconn Ventures Pte Ltd sought to withdraw from a deal for a $170 million investment.
Price Action: RIDE shares traded lower by 10.6% at $0.27 premarket on the last check Tuesday.