Jun 14, 2021 - Economy
Lordstown Motors faces a leadership shakeup amid financial troubles
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Another day, another development in the Lordstown Motors saga.
- What's new: The buzzy electric vehicle company's CEO and CFO are out.
- The abrupt exits come days after the company warned it could go out of business.
Why it matters: Lordstown — which has no revenue (and no product!) — could be a poster child for the downside of Wall Street's SPAC boom.
Also new today ... a board investigation found there were inaccuracies in the way Lordstown counted pre-orders — a claim that short seller Hindenburg Research made in March, which Lordstown initially disputed.
- "On several occasions" the company stated its pre-orders came from commercial fleets, but in reality the orders were from "influencers" who said they would try to secure pre-orders, as well as from fleet management companies who showed interest, the company wrote.
