Lordstown Motors
- Lordstown Motors jumped as much as 13.58% on Tuesday before paring gains.
- The jump came after president Rich Schmidt said his company is raising new funds and reconfirming orders for its electric vehicles.
- Lordstown's CEO and CFO resigned on Monday due to evidence of inaccurate statements.
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Lordstown Motors stock jumped as much as 13.58% on Tuesday before paring gains after President Rich Schmidt said at an Automotive Press Association event in Detroit that the company is actively raising additional funds and has reconfirmed orders for its vehicles.
Lordstown now says it has enough money to make its electric trucks through May of 2022. The company warned just last week that it might not have enough cash to fund the development of its first truck or remain in business without raising more capital.
Schmidt also said the company is no longer working with Camping World on EV products for the RV marketplace. "We're just focused currently on the Endurance truck," Lordstown's president said.
"That's our next goal for the next three months is to make sure we hit our production targets and stay within our budgets and drive forward to getting the vehicles ready for the market," he added.
Lordstown saw a record drop in its share price on Monday after CEO Steve Burns and CFO Julio Rodriguez resigned from their duties due to the board finding evidence of inaccurate statements.
According to former employees of Steve Burns, the CEO exaggerated demand for his firm's electric trucks and even hired interns to do his engineering.
Burns was called everything from a "visionary" to a "con man" by 17 former employees interviewed by Insider.
During the Automotive Press Association's webcast on Tuesday Lordstown chairwoman Angela Strand said it was "a new day at Lordstown," adding that "there are no disruptions, and there will be no disruptions, to our day-to-day operations" after the departure of the company's CEO and CFO.
"We remain committed to inspiring, building, and maintaining confidence and transparency in our relationships with each other at Lordstown and, very importantly, with our customers, our partners, our suppliers, and our shareholders," Strand added.
Lordstown stock originally took a hit when the noted short-seller Hindenburg Research put out a report that called the company an "intricate fraud" in March, unraveling its deal with General Motors.
Lordstown stock traded up 7.24% as of 2:53 p.m. ET on Tuesday.
