Bloomberg reports on the fiasco at Lordstown Motors, where “inaccuracies,” in reporting have seen the CEO and CFO leave the company. Christine Watkins writes:
Lordstown Motors Corp. announced the abrupt departure of its two top executives and said its board found evidence of inaccurate statements, intensifying the turmoil for the electric-vehicle maker and onetime SPAC star.
The company said in a statement Monday that Chief Executive Officer Steve Burns and Chief Financial Officer Julio Rodriguez have resigned from the company, effective immediately.
It is the latest setback for the company, which warned last week it might not have enough cash to fund development of its first truck or even survive the next 12 months if it can’t raise more capital. In March, the startup disclosed a Securities and Exchange Commission probe of its operations after a short seller said its technology was flawed and that preorders for its truck were nonbinding.
Shares fell as much as 20% in premarket trading Monday. The stock was down 11% to $10.11 as of 7:55 a.m. in New York.
In a separate statement, Lordstown said a board investigation concluded the company had made certain statements about vehicle preorders that did not hold up to scrutiny.
“Lordstown Motors made periodic disclosures regarding preorders which were, in certain respects, inaccurate,” according to the company’s own investigation.