Electric-truck maker Lordstown's CEO, CFO resign, shares slump

Lordstown Motors Corp on Monday announced the sudden departure of its chief executive and finance head, just days after the electric truck maker warned that it may not have enough money to stay in business over the next year. The resignations of founder and CEO Steve Burns and Chief Financial Officer Julio Rodriguez come as the company's board reported conclusions from an internal investigation into claims made by short-seller Hindenburg.

Lordstown Motors Corp on Monday announced the sudden departure of its chief executive and finance head, just days after the electric truck maker warned that it may not have enough money to stay in business over the next year.

The resignations of founder and CEO Steve Burns and Chief Financial Officer Julio Rodriguez come as the company's board reported conclusions from an internal investigation into claims made by short-seller Hindenburg. Lordstown acknowledged that it had overstated the quality of pre-orders for the company's electric trucks, but rejected as false Hindenburg's accusations that it had overstated the viability of its technology and misled investors about its production plans.

The company named lead independent director, Angela Strand, as executive chairwoman to oversee the firm's transition until the appointment of a permanent CEO. Becky Roof, who had previously served as interim CFO at numerous companies including Eastman Kodak and Hudson's Bay Co, was named interim finance chief of Lordstown, effective immediately.

Since the going-concern warning last week and a free fall in its share price, the company has tried to allay some worries by saying it was in talks with multiple parties to raise funds. Lordstown and fellow EV maker Nikola, both of which went public via acquisitions by SPACS, have become a target of short-seller Hindenburg.

In March, Hindenburg disclosed that it had taken a short position in Lordstown stock, saying the company had misled consumers and investors. Subsequently, the U.S. Securities and Exchange Commission (SEC) had asked the company for information related to its SPAC merger and preorders of its vehicles.

Hindenburg Research did not immediately respond to a Reuters request for comment.

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