Lordstown Motors stock jumps 20% after it names ex-Icahn Enterprises head as CEO

1 month ago 17
PR Distribution

Shares of Lordstown Motors Corp. rallied much than 20% connected Thursday, boosted by quality that the electric-vehicle shaper has named a erstwhile Icahn Enterprises LP caput arsenic main executive.

Lordstown RIDE, +16.23% banal was connected way for its highest adjacent since July 26 and roseate the astir since Nov. 16, erstwhile it gained 26%.

Earlier Thursday, the institution said it has named Daniel A. Ninivaggi arsenic main executive, effectual immediately. Ninivaggi is simply a erstwhile CEO of Icahn Enterprises IEP, +0.12% and held positions successful automotive and car parts companies, among others. Ninivaggi promised “absolute absorption connected execution.”

Earlier this month, the institution hired a caller vice president of planetary quality, Eric Purcell, charged with overseeing prime standards up of the commencement of accumulation of the Endurance, the company’s planned electrical pickup truck.

Lordstown reported a second-quarter nonaccomplishment earlier successful August, but reaffirmed it was connected way to statesman “limited production” of the Endurance successful September, with archetypal income expected aboriginal adjacent twelvemonth and commercialized income by the 2nd 4th of 2022.

The archetypal fractional of 2021 was eventful for Lordstown, which went nationalist successful October done a reverse merger with a blank-check company.

Its Ohio works belonged to General Motors Co. GM, -2.04%, making compact cars for the bequest car maker, and was slated to beryllium closed arsenic portion of GM’s absorption connected much fashionable and profitable trucks and SUVs. It was past sold to Lordstown Motors.

Lordstown precocious added a “going concern” warning to regulatory filings, pursuing the departure of its CEO and main fiscal officer amid doubts implicit its bid book, with the institution aboriginal clarifying that the orders it had were not binding.

The Justice Department reportedly has launched a probe into the company’s dealings and the electric-truck shaper has disclosed an SEC inquiry.

The banal is down 78% from its closing grounds precocious of $31.40 connected Sept. 21, and has mislaid 66% this year. The losses opposition with gains of astir 19% for the S&P 500 scale SPX, -0.31% for 2021.

Read Entire Article