Electric pickup startup Lordstown Motors is hitting choppy water with the company’s CEO Steve Burns and CFO Julio Rodriguez stepping down abruptly. The pair resigned after an investigation in the Hindenburg Report was made public by Lordstown. Despite the company disagreeing with the Hindenburg Report’s assessment of Lordstown Motors, its top two executives have left the building.
While Lordstown’s statement on the Hindenburg Report point to it being off base, the company did acknowledge that it could have, potentially, made misleading statements on its periodic release of pre-orders. The company notes in a release, “Lordstown Motors made periodic disclosures regarding pre-orders which were, in certain respects, inaccurate.”
Those inaccuracies could be the reason that the company’s top management is stepping down; however, Lordstown points to the company’s repositioning from its research and development, and early production, phase into the commercial phase of its business as the reason for the change at the top. It’s not uncommon for companies to shift executive management when transitions inside of the company occur, though this change does seem coincidental.
Adding to that, the company did reveal that it was short on cash. A regulatory filing initially reported by the Wall Street Journal could raise questions regarding the viability of the company, regardless of executive change.
As you would imagine, this ordeal has hurt the company’s stock market price. After the news of the resignations, the company’s stock price dropped from its $11.41 share price to $9.40 per share before lunch. Much like executive management changes, the stock price of a company isn’t exactly an honest evaluation of its performance, but it does seem like the massive shakeups were not good for Lordstown’s bottom line.
Filling the missing roles will be Becky Roof as the interim CFO and Angela Strand as executive chairwoman until a new CEO fills the position.
Can Lordstown recover from its looming troubles, or can the company follow the same fate as other electric vehicle startups? Let us know your thoughts below.
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