Shares of electric vehicle maker Lordstown Motors (NASDAQ:RIDE) are plummeting after the company announced that Chief Executive Officer Steve Burns and Chief Financial Officer Julio Rodriguez have resigned.
Shares of Lordstown Motors, which went public through a special purpose acquisition company (SPAC) last October, fell nearly 20% on Monday (June 14) to $9.26 U.S. per share.
The high-profile resignations came 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.
Lordstown said its lead independent director, Angela Strand, has been appointed executive chairwoman and would oversee the company’s transition until a permanent CEO is installed. The company named Becky Roof as interim CFO, effective immediately.
The Securities and Exchange Commission (SEC) is investigating claims by short-seller Hindenburg Research that Lordstown Motors misled investors with false information.
Hindenburg accused Lordstown in March of using "fake" orders to raise capital for its Endurance electric pickup truck. The short seller said the truck was years away from production, but Lordstown Motors has maintained it’s on track to start making the vehicle this September.
The resignations are the latest fallout at Ohio-based Lordstown Motors. Shares of the aspiring electric vehicle maker are down 54% this year. Its market cap is now about $2 billion U.S. In May, the company slashed its production guidance for the year and said it will need to raise additional capital.
