Leaders of embattled startup Lordstown Motors step down


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Lordstown Motors replaced its CEO after a probe concluded some of the company’s statements about auto pre-orders were inaccurate

Shares of Lordstown Motors dove Monday as it announced its top executive had resigned after an investigation concluded some of the company’s statements about auto pre-orders were inaccurate.

After warning last week that it lacked sufficient capital to begin commercial production, the electric truck startup said Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez had both resigned.

However, the Ohio-based company has been under scrutiny following a March report by short sellers at Hindenburg Research, which called its investment thesis a “mirage” built on “fake orders,” and pointed to various production problems.

The investigation concluded that Hindenburg’s analysis was “in significant respects, false and misleading.” However, the report also said that Lordstown “made periodic disclosures regarding pre-orders which were, in certain respects, inaccurate.”

The company appointed lead independent director Angela Strand as executive chairwoman and Becky Roof as interim chief financial officer. Strand will oversee the transition until a permanent CEO is identified, the company said.

Chairman David Hamamoto said Lordstown has “achieved significant milestones” on the Endurance and expects “limited production” to begin 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.”

However, Morgan Stanley also expressed doubts about the Endurance’s motor system, which is installed in the vehicle’s wheels.

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