Lordstown Motors Shares Log Strong 30 Days
LORDSTOWN, Ohio – Shares of Lordstown Motors Corp. have climbed more than 37% since Aug. 25, as the electric vehicle manufacturer prepares the limited launch of its Endurance pickup truck.
The company’s stock, which trades under the ticker symbol RIDE, closed at $7.57 on Friday, up 1.8%, following an 8.6% gain on Thursday. RIDE stock has been on a steady rise since the company appointed Daniel Ninivaggi as its CEO Aug. 26.
Shares of the manufacturer soared nearly 18% on Ninivaggi’s appointment after months of declining value. The stock price hit a 52-week low of $4.77 on Aug. 19.
Still, Lordstown Motors stock is well below its 52-week high price of $31.57. Year-to-date, Lordstown Motors stock is down 62.8% and is down 38.4% over the past six months. The plummet coincided with a series of negative news stories.
In March, a short seller’s report alleged that company executives made misstatements related to preorders of the Endurance. It also reinforced that the company did not have sufficient capital to fund production of the vehicle.
Later that month, then-Lordstown Motors CEO Steve Burns disclosed that the U.S. Securities and Exchange Commission had launched an inquiry into the company.
The U.S. Department of Justice has since acknowledged a separate investigation into the company’s preorder claims and its merger with blank-check company DiamondPeak Holdings Corp. in October of 2020.
In June, Lordstown Motors issued a going concern notice with its amended annual report, stating that it lacked the capital to continue through 2022 unless the company could raise more money. Then on June 13, CEO Burns and Chief Financial Officer Julio Rodriguez resigned.
Angela Strand was named executive chairwoman iand served in that role until Ninivaggi – a former associate of Carl Ichan – was hired in August.
The company said it’s still on track to begin limited manufacturing of pre-production vehicles from its plant in Lordstown.
Copyright 2023 The Business Journal, Youngstown, Ohio.