- 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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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.
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