Lordstown Motors Corp. announced the sudden departure of its CEO , Steve Burns, and its chief financial officer (CFO) , Julio Rodriguez, today, just days after the electric truck maker warned that it may not have enough money to continue its business next year. The company’s stock price fell sharply after the two executives left.
"We thank Steve Burns for his passion and commitment to the company," the startup said.
The resignations of the two executives come as the company's board reported findings from an internal investigation into allegations made by Hindenburg. Burns is Lordstown's largest shareholder, with a stake of more than 26%, according to Refinitiv.
Lordstown acknowledged that it had overestimated the quality of pre-orders for its electric trucks, but rejected as false Hindenburg's accusations that it overestimated the viability of its technology and misled investors about production plans.
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When it announced its reverse merger deal last August, Lordstown said it had about $1.4 billion in pre-orders for its Endurance truck . After Hindenburg accused the company of misleading investors about the pre-orders, Lordstown said it has not had any binding orders since.
The company has appointed lead independent director, Angela Strand, as executive chairman to oversee the company's transition until a permanent CEO is appointed.
"We are committed to achieving our production and commercialization goals," Strand said in a statement.
Strand, 52, is CEO of a consulting firm specializing in technology and business strategy, and has worked with fleets and fleet management companies, the types of clients Lordstown aims to win after Endurance's scheduled production start in September.
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Lordstown revealed that deliveries to customers will not begin until the first quarter of 2022.
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Additionally, Becky Roof, who has previously served as interim CFO at several companies, including Eastman Kodak (KODK.N) and Hudson's Bay Co, has been named interim CFO of Lordstown, effective immediately.
Lordstown also revealed in a regulatory filing that it hired a unit of AlixPartners, a consulting firm known for helping companies restructure operations.
Since warning of continued concern last week and the free fall in its share price, the company has sought to allay some concerns, saying it was in talks with multiple companies to raise capital.
