Lordstown Motors Corp jumped after saying it has enough money to make its battery-powered trucks through May of next year, paring a record decline the previous day following the departure of two top executives.
The automaker is actively raising additional funds and has reconfirmed orders for its debut vehicle, President Rich Schmidt said at an Automotive Press Association event in Detroit.
In a short address at the start of the webcast, newly-appointed Executive Chair Angela Strand — formerly Lordstown’s lead independent director — said the company was focused on being transparent with investors
and bringing its technology to market.
The startups’s two top executives — Chief Executive Officer Steve Burns and Chief Financial Officer Julio Rodriguez — resigned after the board found evidence of inaccurate statements. Lordstown warned last week it might not have enough cash to fund development of its first truck or even survive the next 12 months if it can’t raise more capital. The company now expects to build between 15,000 and 20,000 electric vehicles with cash on hand through May of next year after production starts up in September, Schmidt said. “We still have well over $400 million in the bank and so we don’t have an issue per se on funding.”
Lordstown disclosed it had made misstatements about its vehicle preorders after a short seller alleged in March that many were “fictitious.” The Securities and Exchange Commission has begun an investigation.