Lordstown Motors soars 41% after new CEO takes charge of EV developer

Endurance electric pickup truck by Lordstown Motors
The Endurance.

  • Lordstown Motors soared as much as 41% on Thursday after the EV developer named Daniel Ninivaggi as its CEO.
  • Ninivaggi was previously the CEO of Icahn Enterprises and has experience in the auto business.
  • He hinted at plans to raise more cash and said Lordstown’s Endurance pickup truck could take market share.
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Shares of Lordstown Motors soared as much as 41% on Thursday after the EV developer named Daniel Ninivaggi as its CEO..

The Ohio-based company has been struggling in recent months following the resignation of its CEO and CFO, as well as being the subject of a DOJ and SEC investigation into whether it misled investors on its pick-up truck reservations.

Ninivaggi was previously the CEO of Icahn Enterprises, a conglomerate founded by Carl Icahn. At Icahn Enterprises, he oversaw the company’s auto parts and distribution businesses.

Lordstown’s appointment of a new CEO is likely easing some investor concerns, as Morgan Stanley commented earlier this month about the EV company, “Our team is not aware of any example in contemporary automotive history where a product was successfully validated, launched and commercialized without a CEO.”

The new CEO is taking charge of the company as it looks to compete in the increasingly competitive EV market. Ninivaggi said he sees potential for Lordstown’s Endurance pick-up truck to take meaningful market share from incumbents like Tesla, Ford, and General Motors.

“I believe the demand for full-size electric pickup trucks will be strong and the Endurance truck, with its innovative wheel hub motor design, has the opportunity to capture a meaningful share of the market,” Ninivaggi said.

But to execute on that vision, Lordstown Motors badly needs cash, which is top of mind for the new CEO, who said the company will evaluate all options to raise cash to fund the development, manufacturing, and sale of the Endurance pick-up truck.

Despite Thursday’s rally, shares of Lordstown Motors are still down 68% year-to-date, and down as much as 73% from its record high.

Read more: 573 mutual funds with $3 trillion in assets are most bullish on these 10 stocks in a ‘deteriorating stock-picking environment,’ Goldman Sachs says – and are underweight some of the biggest tech stocks on the market

Lordstown Motors stock price
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Lordstown Motors slumps 15% on announcement of CEO and CFO resignation

FILE PHOTO: A view of the entrance to the West Plant at the General Motors Lordstown Complex, assembly plant in Warren, Ohio, U.S., November 26, 2018. REUTERS/Alan Freed
FILE PHOTO: A view of the entrance to the West Plant of the General Motors Lordstown Complex assembly plant in Warren. Reuters

  • Lordstown Motors shares fell 15% Monday after the company announced the CEO and CFO resigned.
  • The resignations are effective immediately, according to a press release.
  • Shares of the electric-vehicle startup have now lost about half their value this year.
  • See more stories on Insider’s business page.

Lordstown Motors slumped 15% early Monday after two top executives announced their immediate resignation just days after the company said it may run out of cash.

Chief Executive Officer Steve Burns resigned from his position as CEO and board member, and Chief Financial Officer Julio Rodriguez resigned from his post, according to a company press release. Both are effective immediately.

The company appointed Lead Independent Director Angela Strand as the executive chairwoman to oversee the CEO transition until a permanent leader is identified, the company said. Becky Roof will serve as the interim Chief Financial Officer.

“As we transition to the commercial stage of our business – with planned commencement of limited production in late-September – we have to put in place a seasoned management team with deep experience leading and operating publicly-listed OEM companies,” the company said in its release.

Shares of the Lordstown, Ohio-based electric vehicle startup fell below $10 Thursday, meaning the stock has lost about half its value so far this year.

In 2019, the company purchased a former General Motors plant in Ohio to start producing the Endurance electric pickup this fall. But last week, the company told shareholders it might not have enough cash to start commercial production of its pickup this year, and it had “sufficient doubts” as to whether it would be able to meet its financial obligations.

In March, Lordstown was the target of short-seller Hindenburg Research, which accused the company of pumping up preorder numbers to generate investor interest.

Lordstown Motors went public in October via a special purpose acquisition company. It is among a string of electric-vehicle makers that saw their share price peak in February and have since declined.

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Lordstown Motors sinks 19% as the electric vehicle maker cuts production outlook and seeks more funding

Endurance electric pickup truck by Lordstown Motors
The Endurance truck with Lordstown Motors CEO Steve Burns.

  • Lordstown Motors shares fell 19% on Tuesday after saying it needs more money to execute its plans.
  • It forecast cash and cash equivalents of $50 million to $75 million by year’s end, lower than the previous outlook of $200 million.
  • Lordstown said it’s been hurt by challenges including higher-than-expected parts costs.
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Lordstown Motors shares tumbled Tuesday after the company severely cut its annual production guidance and said it needs to raise more money as it aims to start production on its electric pickup truck this year.

The company late Monday said it remains on track to begin producing its Endurance truck in late September, at limited capacity.

“However, we have encountered some challenges,” the company said. These include significantly higher-than-expected expenditures for parts and equipment.

It said it needs additional capital to execute on its plans and projected having $50 million-$75 million in cash and cash equivalents at the end of the year, which is less than the $200 million it projected in March.

Shares of the company dropped much as 19% to $7.88 as Tuesday’s session got underway. The shares have pulled back from a mid-February high to register losses of roughly 51% so far this year.

Lordstown forecast Endurance production this year would be “at best” 50% of its previous expectations.

The EV startup for the first quarter ended March 31 posted a loss of $0.72, wider than the loss of $0.16 per share a year ago.

The company in March said it was cooperating with financial regulators after a short-seller’s report accused the company of misleading investors by overstating its order volume.

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Lordstown Motors plunges 23% after short-seller report says the EV SPAC has ‘no revenue and no sellable product’

Endurance electric pickup truck by Lordstown Motors
The Endurance.

  • Shares of Lordstown Motors fell as much as 23% on Friday after Hindenburg Research revealed it has a short position in the electric-vehicle maker.
  • The research firm said Lordstown has misled investors and has “no revenue and no sellable product.”
  • Shares are down roughly 25% since Lordstown Motors’ public debut via SPAC in October.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Lordstown Motors tumbled as much as 23% on Friday after short-seller Hindenburg Research said the electric pickup truck maker has misled investors.

The research firm said it had taken a short position in the Lordstown Motors after determining that it has “no revenue and no sellable product.”

Lordstown’s stock plunged to as low as $13.64 per share on Friday. The company went public via a SPAC in October amid a rush of other EV SPACs including Nikola, Hyliion, Canoo, and Fisker.

Hindenburg slammed Lordstown for misleading investors on both its demand and production capabilities. Lordstown said in January it had received more than more than 100,000 non-binding production reservations from commercial fleets for its EV truck.

“The company has consistently pointed to its book of 100,000 pre-orders as proof of deep demand for its proposed EV truck,” Hindenburg said. “Our conversations with former employees, business partners and an extensive document review show that the company’s orders are largely fictitious and used as a prop to raise capital and confer legitimacy.”

Lordstown Motors is down roughly 25% since its public debut in October.

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