Electric truck maker Lordstown Motors shares slide after CEO and CFO resign
Lordstown Motors said Monday that CEO Steve Burns and CFO Julio Rodriguez have resigned, days after the electric truck maker warned that it had "substantial doubt" about its ability to continue as a going concern in the next year.
Shares of Lordstown, which went public through a special purpose acquisition company, or SPAC, in October, slid by about 13% during premarket trading.
Lordstown said its lead independent director, Angela Strand, has been appointed executive chairwoman and would oversee the firm's transition until a permanent CEO is identified. The company named Becky Roof as interim CFO effective immediately.
The resignations come amid an internal investigation of the company's operations into claims by short-seller Hindenburg Research that it misled investors. The U.S. Securities and Exchange Commission has opened an inquiry looking at Hindenburg's claims as well as the company's merger with SPAC DiamondPeak Holdings.
Hindenburg accused Lordstown in a March report of using "fake" orders to raise capital for its Endurance electric pickup. The short seller said the pickup was years away from production; however, Lordstown has maintained it's on track to start making the vehicle in September.
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