Lordstown Motors (RIDE), the beleaguered EV startup, said Thursday it had appointed Daniel Ninivaggi as its new CEO, sending RIDE stock sharply higher. Other EV stocks also rose.
Lordstown appointed Ninivaggi, the former CEO of Icahn Enterprises (IEP) some two months after Lordstown’s former CEO, Steve Burns, resigned from the Ohio-based electric-vehicle maker.
Burns resigned after short-seller Hindenburg Research earlier this year alleged that Lordstown faked its vehicle order figures to raise money and appear legitimate.
At Icahn Enterprises, Ninivaggi oversaw the firm’s auto-aftermarket and parts distribution businesses. He also held executive positions at Lear Corp. and Federal Mogul Holdings Corp., an auto-parts supplier.
RIDE Stock, EV Stocks
RIDE stock jumped 18% to close at 6.49 on the stock market today, reversing a monthslong downtrend for the company but coming off session highs after hitting resistance at the 50-day line Shares have a Composite Rating of 2. Its EPS Rating is 1, the weakest possible.
The report from Hindenburg, published in March, contributed to much of the downtrend for RIDE stock. Lordstown, in response to the report in June, acknowledged “periodic disclosures regarding preorders which were, in certain respects, inaccurate.”
Last month, Lordstown said the Justice Department was investigating its business, as well as its move to go public last year via a special-purpose acquisition company, or SPAC.
The company in June warned that it didn’t have enough cash to start production of its electric pickup truck, the Endurance, and could go under without more funding. But it later backtracked. Lordstown recently said it landed a deal under which YA II, a hedge fund, would buy up to $400 million in equity.
As of its second quarter, reported this month, Lordstown was losing money and had no sales. The company has said it was on pace to begin limited manufacturing the Endurance at the end of September. Hindenburg’s report alleged that production could be three to four years down the road.
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