Lordstown Crisis Deepens As CEO Steve Burns Resigns

Things were supposed to be looking up for Ohio-based startup Lordstown Motors. On paper, theEnduranceelectric pickup truck seemed to be a strong product and in early April, thefirst two beta trucksfinally rolled off the production line. But the company's fortunes have once again taken a turn for the worse. Last week, it was reported that Lordstowndid not have the cashto begin production of its truck. As if that wasn't bad enough, both CEO Steve Burns and CFO Julio Rodriguez have now abruptly resigned. The resignations are effective immediately and Becky Roof will take over as interim CFO.

This latest news certainly won't do much to instill confidence in a company that has yet to get a vehicle on the road. Shares of the automaker have tumbled by over 40% in 2021 and its market cap stands at approximately $2 billion. Shares slid by around 13% following the latest resignations.

Of course, there's also the issue of the company having been accused offaking the number of pre-ordersit had received. Along with Becky Roof as interim CFO, Lordstown's lead independent director, Angela Strand, has been appointed as executive chairwoman. Strand would oversee the likely challenging transition until a new CEO can be found.

The dramatic resignations of Burns and Rodriguez come just before Lordstown's plans to speak to media, analysts, and investors at its Ohio-based plant. However, Strand has no intention of canceling these plans.