Two top executives at Lordstown Motors resigned Monday as problematic news about finances at the Trumbull County electric truck startup continues to trickle out.
Steve Burns resigned as chief executive officer and from the company鈥檚 board of directors. Chief Financial Officer Julio Rodriguez also resigned.
Angela Strand, the company's lead independent director, has been appointed executive chairwoman and Becky Roof, a certified public accountant and financial consultant, will serve as interim CFO.
The changes are effective immediately.
Lordstown Motors has already signed on with an executive search firm to find a permanent CEO and CFO, according to a press release.
The resignations come a week before Lordstown Motors is set to host a week-long open house for investors, analysts, partners, potential customers and the media. It's also on the heels of an amended SEC filing, concerns about the lack of cash on hand and an investigation into a research report alleging safety concerns about the Endurance electric truck and questioning the company鈥檚 sales contracts.
Lordstown Motors on Monday called the 鈥渇alse and misleading鈥� after an investigation by a special committee of its own board of directors. The committee took particular issue with the report鈥檚 allegations about the viability of the electric vehicle company鈥檚 technology and production timeline, calling the report 鈥渘ot accurate,鈥� while also admitting some clarification is needed regarding its pre-orders, calling some earlier disclosures 鈥渋n certain respects, inaccurate.鈥�
鈥淟ordstown Motors has repeatedly disclosed that its pre-orders are non-binding, and it has highlighted the risk that pre-orders may not be converted to actual orders,鈥� the company said in .
In an , the company warned investors that a lack of cash on hand could impede commercial production and keep Lordstown Motors from hitting its initial target of 2,200 trucks per year.
But the struggling startup said it will begin limited production of
鈥淲e remain committed to delivering on our production and commercialization objectives, holding ourselves to the highest standards of operation and performance and creating value for shareholders,鈥� Strand, the newly appointed interim CEO, said in a Monday press release. 鈥淎long with the management team, I will continue to work closely with them and the Board to execute on Lordstown鈥檚 vision for the future of electrified transportation.鈥�
