Lordstown Motors’ stock takes a dive after losing its CEO and CFO

Lordstown Motors has been struggling with the business for some time now and rather than getting better, it seems that the company is experiencing more issues. Things are getting worse especially now that it was reported its chief executive officer and chief financial officer have stepped down.

Temporary executives to take over

As per CNN Business, Lordstown Motors’ CEO Steve Burns and CFO Julio Rodriguez have resigned and this comes just a week after they warned the company may soon close down.

For replacement, as the firm is still looking for someone to take over the CEO’s post, Angela Strand, a lead independent director, will be temporarily managing the company as its executive chairwoman.

As for the CFO role, it was reported that an accountant consultant who also served as interim CFO at Eastman Kodak, Becky Roof, will be Lordstown Motors’ CFO, replacing Rodriguez. She also previously worked at Hudson’s Bay. In any case, Burns also resigned from the firm’s board of directors but remained the largest shareholder as its founder.

"Lordstown Motors has achieved significant milestones on the path to developing the first and best full-size all-electric pickup truck, the Lordstown Endurance,” Lordstown Motors stated in a press release that was issued on Monday, June 14. “We thank Steve Burns for his passion and commitment to the company," Lordstown said in a statement on the executive changes.”

The company added, "As we transition to the commercial stage of our business - with planned commencement of limited production in late-September. We have complete confidence in Angela and Becky, and our expanded leadership team, to effectively guide the company during this interim period."

Stocks nosedived after the resignations of execs

Fox Business reported that shortly after the resignation of Lordstown Motors’ CEO and CFO was announced, the company’s stocks plummeted to almost 20% in the early trading. It was mentioned though that the stock was already down by over 40% in 2021 so the recent plunge was really bad. All in all, the EV maker lost 43% this year.

The executives in the company are doing their best to revive Lordstown and get back on track. It is said to be seeking funds and aiming to mass-produce a full-size electric pickup that it intends to sell in September. The company is expecting a large order for its pickup that will rival Ford’s F-150 Lightning model.