Lordstown executives quit, stock down 18%
The top two executives of electric pickup truck maker Lordstown Motors have resigned, possibly further clouding the company’s future even as some industry analysts approve of the management changes.
Lordstown Motors on Monday announced that company founder Steve Burns resigned as chief executive officer and from the board of directors. Also resigning was Julio Rodriguez, chief financial officer. The resignations took place Sunday, with letters from the Northeast Ohio company saying the employment of both men had been terminated.
The announcement sent Lordstown Motors stock down sharply Monday. Shares closed down $2.15, or 18.8%, to $9.26. Shares were as low as $8.91 in earlier trading. Shares have ranged from a low of $6.69 to a high of $31.80 over the past 52 weeks.
The company did not cite specific reasons for the two resignations in its filing Monday with the Securities and Exchange Commission.
But in a separate news release, Lordstown Motors said the company has made inaccurate statements tied to non-binding pre-orders of its Endurance full-size electric pickup truck. That announcement comes after the company last week said it needs significant infusions of money to remain in operation.
The second release was in response to a highly critical March analysis of the company by Hindenburg Research, a firm that specializes in short selling, that Lordstown Motors referred to as the Hindenburg Report.