The CEO and CFO of $5.3 billion electric startup Lordstown Motors resigned after the company came under SEC investigation

Early last month, we wrote about Lordstown Motors, an electric vehicle startup that once valued at $5.3 billion came under SEC investigation for an alleged 100,000 in fake preorders and zero car delivery. To our surprise, the news did not get much coverage from the corporate media considering that the founder was featured several times on these media outlets a year earlier.

Unsurprising to us, however, the startup issued a “going concern” warning, telling investors that it might not be able to start production of its electric work truck without a fresh infusion of cash. In its amended  annual report with the Securities and Exchange Commission (SEC), the company said in one year it may no longer function as “a going concern.”

Lordstown Motors said that with its current cash and cash equivalents of $587 million as of the end of the first quarter, it did not have enough funding to launch the Endurance, an electric pickup truck geared toward commercial operators. “These conditions raise substantial doubt regarding our ability to continue as a going concern,” the company said in the filing.

This morning, Lordstown Motors announced this morning that CEO Steve Burns and CFO Julio Rodriguez have resigned from the company. According to the announcement, Angela Strand has been appointed as executive chairwoman and will lead the company until a new CEO is appointed. The company said Becky Roof will serve as Interim CFO.

“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.

“Along with the management team, I will continue to work closely with them and the Board to execute on Lordstown’s vision for the future of electrified transportation. I am excited to lead the passionate and dedicated team of Lordstown employees and to work with our valued customers, suppliers, investors, and partners and to hosting Lordstown Week, which commences on June 21st.”

In what many are calling Nikola 2.0, Lordstown Motors is an Ohio, Illinois-based electric SPAC company founded in 2019 to offer Americans a glimpse into the future of all-electric truck vehicles. The company currently has no revenue and zero delivery.

Lordstown Motors was founded by Steve Burns, who previously served as the CEO WorkHorce, another electric car company. Lordstown Motors CEO Steve Burns once said that the goal of the company is “to become the first electric truck to finish the race and to prove the capability of its unique design, which features four in-wheel hub motors that are the drivetrain’s only moving parts.” Lordstown Motors even caught the attention of former President Trump.

You can read over detailed coverage of Lordstown Motors here.