CEO, CFO of electric truck-maker Lordstown Motors resign, shares fall

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Lordstown Motors CEO Steve Burns (R) resigned today. He is pictured here with former president Donald Trump posing with a new Lordstown Motors 2021 Endurance electric pickup on the South Lawn of the White House on Monday, September 28, 2020, in Washington D.C. Photo by Ken Cedeno/UPI

Lordstown Motors CEO Steve Burns (R) resigned today. He is pictured here with former president Donald Trump posing with a new Lordstown Motors 2021 Endurance electric pickup on the South Lawn of the White House on Monday, September 28, 2020, in Washington D.C. Photo by Ken Cedeno/UPI | License Photo

June 14 (UPI) -- Shares of Lordstown Motors fell nearly 20% on Monday after CEO Steve Burns and CFO Julio Rodriguez resigned.

The resignations come only a day after reports that the company may have trouble staying afloat the remainder of the year, CNBC reported. Overall, the stock price of the electric truck manufacturer has fallen by more than 40% this year.

Lordstown is a fast-growing startup company that when public in October through a special-purpose acquisition company. The resignations are concurrent with an internal investigation into the company's operations.

Short-seller Hindenburg Research accused Lordstown of using "fake" orders in March to raise capital for its Endurance pickup truck.

Board member David Hamamoto said in a press release the company plans to begin limited production of its vehicles in September.

Hamamoto said it was time to "put in place a seasoned management team with deep experience leading and operating."

Morgan Stanley analyst Adam Jonas told CNBC that changing the management structure of the company is the first important step for a new beginning.

The company said plans remain in place to host media, investors, analysts and others next week at its factory, a former General Motors facility in Ohio.

Lordstown has named its lead independent director, Angela Strand, as executive director to oversee the company on an interim basis.

"We remain committed to delivering on our production and commercialization objectives, holding ourselves to the highest standards of operation and performance and creating value for shareholders," Strand said in a statement.

Becky Ruff, an accountant and consultant, will serve as interim CFO.

Lordstown was home to a General Motors factory, which existed for more than 50 years. In 2019, it was taken offline and later given new life by Lordstown Motors.

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