Both the CEO and CFO Suddenly Resigned From Electric Truck Maker Lordstown

Shares of Lordstown Motors were falling on Monday as Wall Street learned that the company’s CEO and CFO had resigned.

The electric truck maker warned days ago that it had “substantial doubt” about its ability to continue as a going concern in the next year.

CEO Steve Burns and CFO Julio Rodriguez both stepped down and Becky Roof was named interim CFO effective immediately.

The company, which had went public through a special purpose acquisition company in October, saw its shares slide 18.8% Monday to $9.26.

Lordstown said its lead independent director, Angela Strand, has been appointed executive chairwoman and would oversee the firm’s transition until a permanent CEO is identified.

There is an internal investigation of the company’s operations going on as short-seller Hindenburg Research had claimed the company had misled investors.

The Securities and Exchange Commission has opened an inquiry looking at Hindenburg’s claims as well as the company’s merger with SPAC DiamondPeak Holdings.

Hindenburg accused Lordstown of using “fake” orders to raise capital for its Endurance electric pickup earlier this year and said the pickup was years away from production.

Lordstown has however maintained it’s on track to start making the vehicle in September.

According to Morgan Stanley analyst Adam Jonas, the management change is “an important first step for the company to move forward,” including securing necessary new capital.

“We felt it was untenable for the company to secure necessary new capital with a management team widely seen as potentially not leading the company into the next era of its development,” Jonas said Monday in an investor note.

Shares of Lordstown are down 54% this year.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.