Top two Lordstown Motors executives resign due to splattered electric truck startups

The top two Lordstown Motors executives have resigned from Ohio’s electric truck startup as problems continue to grow in Ohio’s electric truck startup.

CEO Steve Burns and chief financial officer Julio Rodriguez have resigned, the company said earlier Monday.

Departure arrives within a week Lordstown warned It may not be possible to start operations in a year as it is trying to secure funds to start full-scale production of electric pickup trucks. With quarterly regulatory submissions, the company’s $ 587 million on hand as of March 31 isn’t enough to start commercial production and start selling full-size pickups called Endurance. Said that.

Burns warned in May that if the company couldn’t find a new source of funding, it could cut production by more than half this year to 1,000 units.

On Monday, Lordstown said it would appoint chief independent director Angela Strand as chairman and oversee the transition of the organization until a permanent CEO was found. Strand is currently Managing Director of Advisory Company StrandStrategy.

Becky Roof will be the interim CFO. Roof is a Certified Accountant, consultant for listed companies, and interim CFO at companies such as Eastman Kodak, Hudson Bay, Saks Fifth Avenue, and Aceto Corporation.

Lordstown, southeast of Cleveland, said on Monday that it hired an executive search firm to help find a permanent alternative to the role.

Asked truck order

Also on Monday, the company responded to a bitter report from Hindenburg Research in March. Investment firms betting on the stock of companies that they see as overvalued are questioning the number of pre-orders they claim to have received against Marquee Endurance Vehicles.

Ford F-150 pickup truck becomes electric


Rosetown said an independent investigation found that most of Hindenburg’s reports were groundless. However, one potential buyer who placed a large number of orders admitted that he did not appear to have sufficient resources to make those purchases. Other orders appear unreliably vague or weak.

Lordstown struggled this year, starting in January when a prototype of an endurance pickup truck ignited 10 minutes after its first test drive in Michigan. After that, the company was unable to pay the $ 570,000 property tax payable in early March. There was also the possibility of four class proceedings by investors claiming to have been fraudulent. The proceedings filed were primarily based on Hindenburg’s report.

Top two Lordstown Motors executives resign due to splattered electric truck startups

Source link Top two Lordstown Motors executives resign due to splattered electric truck startups

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