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Lordstown relieves CEO and CFO of duties after financial woes, shares slide 16%

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Lordstown Motors (NASDAQ: RIDE) announced earlier today that it had relieved CEO Steve Burns and CFO Julio Rodriguez in their duties while appointing Becky Roof into Interim CFO and Angela Strand into Executive Chairwoman. The announcement comes only a week later Lordstown announced that it was struggling financially, together with quotes there wasn’t enough money to last an additional 12 weeks.

News of the changes from Lordstown’s direction caused stocks to slip over 17 percent.

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“Lordstown Motors Corp. a pioneer in electrical light-duty trucks centered on the commercial fleet market, today announced a few changes to its executive management team as the Company begins to transition in the R&D and early manufacturing phase to the commercial manufacturing phase of its company,” the automaker mentioned in an announcement today. “To this end, Lordstown Motors Lead Independent Director Angela Strand has been appointed Executive Chairwoman of the Company, also will oversee the organization’s transition until a permanent CEO is identified, and Becky Roof, will serve as Interim Chief Financial Officer. Steve Burns has resigned as Chief Executive Officer and by the Company’s Board of Directors, and Chief Financial Officer Julio Rodriguez has also stepped. All modifications are effective immediately and the Company has engaged an executive search firm to identify a permanent CEO and CFO. ”

Last week, Lordstown disclosed that it was struggling with money flow, and the company cited there was “substantial doubt” it would have the ability to keep on operating over the course of the next twelve weeks.

Lordstown Motors, short on cash, warns of potential closure

Businesses often struggle financially early on, especially automakers, unless they have significant financial backing. Tesla experienced significant fiscal struggles in its first days, and Elon Musk has told the story of dividing the rest of his money between the automaker and SpaceX, therefore the two businesses would have a chance. Tesla was on the verge of shutting its doors before investors called and offered to throw more income in. Four years after, Tesla would release the Model S following important engineering attempts, and it eventually became the catalyst to Tesla’s momentum in the sector.

Lordstown stated in the press release it stays committed to “bringing on our production and commercialization objectives, holding ourselves to the greatest standards of performance and functionality and generating value for shareholders,” fresh Executive Chairwoman Angela Strand stated.

The company is also likely to host “Lordstown Week” from June 21st to the 25th, an occasion that will host shareholders, partners, customers, and analysts, to reveal firsthand how the manufacturing teams intend to prepare the Ohio-located plant to the start of production of their Endurance electrical pickup truck. The Endurance is scheduled to start mass production in September.

In the time of writing, Lordstown stock was trading at $9.40, down 17.57 percent.

Disclosure: Joey Klender Isn’t a Lordstown Motors shareholder. He does hold TSLA Stock.

The article Lordstown eases CEO and CFO of obligations after financial woes, stocks slide 16 percent appeared initially on TESLARATI.

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