Shares of electric truck maker Lordstown Motors slide after CEO and CFO resign
Lordstown Motors Corp chief executive Steve Burns poses with a prototype of the electric vehicle startup’s Endurance pickup truck, which it will begin building in the second half of 2021, at the company’s Lordstown, Ohio plant. , United States, June 25, 2020.
Lordstown Motors | Reuters
Lordstown Engines said on Monday that CEO Steve Burns and CFO Julio Rodriguez had resigned, days after the electric truck maker warned it had “substantial doubt” on its ability to continue operating over the next year.
Shares of Lordstown, which went public through a special purpose acquiring company, or SPAC, in October, slipped about 12% on pre-market trading.
Lordstown said its independent lead director, Angela Strand, has been appointed executive chairman and will oversee the company’s transition until a permanent CEO is identified. The company has appointed Becky Roof as interim CFO with immediate effect.
The resignations come amid an internal investigation into the company’s operations in claims of the short seller Hindenburg Research that it misled investors. The United States Securities and Exchange Commission has launched an investigation into Hindenburg’s allegations as well as the company’s merger with SPAC DiamondPeak Holdings.
Hindenburg accused Lordstown in a March report to use “fake” commands to raise capital for its Endurance electric pickup. The short seller said the pickup was years from production; however, Lordstown maintained that he was on track to start manufacture of the vehicle in September.
Tresignations are the latest blows to Ohio-based Lordstown. Shares of the budding automaker have fallen more than 40% this year. Its market capitalization is approximately $ 2 billion.
Lordstown is one of a growing group of electric vehicle start-ups made public through deals with PSPCs, which have become a popular way to raise funds on Wall Street because they have a more streamlined regulatory process than the traditional initial public offerings.
The company is expected to welcome media, investors, analysts and others next week to its plant, a former General Motors plant in Ohio. Strand said those plans remain in place.
“We remain committed to achieving our production and marketing goals, to meeting the highest operating and performance standards, and to creating shareholder value,” she said in a statement. “Together with the management team, I will continue to work closely with them and the Board of Directors to implement Lordstown’s vision for the future of electrified transportation. “
– Reuters contributed to this report.
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