Lordstown Motors Corp said on Monday Chief Executive Steve Burns and Chief Financial Officer Julio Rodriguez have resigned, days after the electric-truck maker warned that it may not have enough cash to stay in business over the next year.
The company added that its lead independent director, Angela Strand, has been appointed executive chairwoman and would oversee the firm’s transition until a permanent CEO is identified.
Lordstown named Becky Roof, who had previously served as interim CFO at numerous companies including Eastman Kodak and Hudson’s Bay Co, was named interim finance chief of Lordstown effective immediately.
Since the going-concern warning last week, the company has allayed some worries by saying it was in talks with multiple parties to raise funds.
Shares of the company fell about 9% to $10.40 in premarket trading after the announcement.
The drop was the latest sign of a recent retreat in the once high flying electric vehicle sector, whose ranks have been swollen by the recent boom in special purpose acquisition companies, or SPACS.
Lordstown and Nikola , which both went public via acquisitions by SPACS – shell companies that use their IPO proceeds to acquire private firms – have lost ground this year.
In March, Lordstown’s shares slumped after short seller Hindenburg Research disclosed it had taken a short position on the stock, saying the company had misled consumers and investors.
Short sellers bet the price of a stock will fall by borrowing and selling shares in the hope of buying them back at a cheaper price and pocketing the difference.
In a separate statement on Monday, the company’s Special Committee investigation concluded that the Hindenburg report was, in significant respects, false and misleading.