By Lauren Hirsch
Lordstown Motors, the electric vehicle company fighting for survival, announced on Monday the resignation of its chief executive, Steve Burns, and chief financial officer, Julio Rodriguez, after the results of an investigation into an investor’s report questioning the company’s viability.
The resignations are effective immediately, and Lordstown has hired an executive search firm to find their replacements.
The company released the results of a special committee investigation into a March report by Hindenburg Research, which took aim at Lordstown shortly after it went public last October. The committee found the report was “false and misleading” as it pertained to the viability of Lordstown’s technology and its timeline for rolling out vehicles. Still, it acknowledged that the investigation identified “issues regarding the accuracy of certain statements regarding the company’s pre-orders.”
Lordstown warned last week it did not have enough cash to start commercial production of its electric pickup truck and might have to close its doors.
The company has appointed its lead independent director, Angela Strand, as executive chairwoman to until it hires a permanent chief executive. Becky Roof will serve as interim chief financial officer.
Shares of Lordstown plummeted nearly 12 percent in premarket trading after the news was announced.
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