Lordstown Motors shares slump most on CEO exit

Selling pressure: A file picture showing Lordstown Motors’ electric Endurance pick-up truck. Burn’s resignation is the latest setback to the one-time SPAC star. — AP

OHIO: Lordstown Motors Corp shares took their biggest one-day drop ever after its two top executives stepped down and the electric truckmaker’s board found evidence of inaccurate statements, dimming the shine of the one-time special purpose acquisition companies or SPAC star.

Chief executive officer Steve Burns and chief financial officer Julio Rodriguez have resigned from the company, effective immediately, the company said in a statement yesterday. Burns declined to comment about his exit in a text message.

It is the latest setback for the company, which warned last week it might not have enough cash to fund development of its first truck or even survive the next 12 months if it can’t raise more capital.

In March, the startup disclosed a Securities and Exchange Commission probe of its operations after a short seller said its technology was flawed and that preorders for its truck were nonbinding.

Shares of the company sank 19% to close at US$9.26 (RM38.10) the lowest in almost three weeks.

The stock is down 54% this year and more than 70% below its closing high of US$31.40 (RM129.21) in September.

It may come under further selling pressure from “potential stock disposals” by Burns, who is the single largest shareholder with a 26.5% stake, Adam Jonas, an analyst at Morgan Stanley who recently pulled his rating on Lordstown, wrote in a research note. — Bloomberg

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