Electric truck maker Lordstown bosses quit, sending shares tumbling
One-time electric vehicle darling Lordstown Motors swerved further off course today as the Ohio-based firm’s chief executive and finance chief quit abruptly.
At the same time, an internal investigation into the carmaker reported that it had found “issues regarding the accuracy of certain statements regarding the company’s pre-orders”.
The revelation, together with the departures, sent shares tumbling 15 per cent in pre-trading today.
Lordstown, which is developing an electric pick-up truck, went public in October in a $1.6bn SPAC deal with Diamond Peak Holdings.
The firm is due to begin selling the vehicle from September, with the model set to cost $52,500.
However, last week the firm warned the SEC that it may not have enough cash to keep operating through the next 12 months.
In a statement, Lordstown said that founder and chief executive Steve Burns, as well as chief financial officer Julio Rodriguez had resigned with immediate effect.
They will be replaced by Lead Independent Director Angela Strand, who will become executive chairwoman, and Becky Roof, who will fill the finance role on an interim basis.
Board member David Hamamoto said: “As we transition to the commercial stage of our business – with planned commencement of limited production in late-September – we have to put in place a seasoned management team with deep experience leading and operating publicly-listed OEM companies.
“We have complete confidence in Angela and Becky, and our expanded leadership team, to effectively guide the company during this interim period.”
Separately, the firm released the results of its probe into a report from short-seller Hindenburg Research, which said Lordstown had misled consumers and investors.
When it was released back in March, the report sent the firm’s shares tumbling, and triggered an internal investigation.
Although it concluded that most of the report was “false and misleading”, Lordstown’s special committee did note that “Lordstown Motors made periodic disclosures regarding pre-orders which were, in certain respects, inaccurate”.