Electric vehicle (EV) charging station company Volta (NYSE:VLTA) is down big today after announcing major leadership changes. Indeed, VLTA stock is down nearly 20% so far today on news that founder and Chief Executive Scott Mercer will step down.
So, what do you need to know about the latest news out of Volta?
Well, today Mercer announced plans to resign from his current role as CEO. However, he will remain in leadership through the transitional period and advise the current Board of Directors into March of next year.
Mercer joins his partner Chris Wendel, co-founder and president of Volta, who also resigned from the company and board. Both Mercer and Wendel are converting their Class B holdings into Class A stock. Additionally, Mercer commented on the decision, saying:
“I am incredibly proud of Volta and what this team has achieved so far, and I am truly excited for its next phase of growth as the industry accelerates and matures. Volta was started with the ambition to be the best business model in the EV charging space, and now the company’s focus needs to turn to scaled, public-market-facing growth.”
Similarly, Kathy Savitt, co-chair of Volta’s board, had promising words on today’s news:
“The Board believes firmly that Volta is a great company with strong fundamentals, and is well-positioned to capitalize on the enormous opportunity before it. We look forward to a smooth transition as Volta’s talented executive leadership team executes on the company’s strategic plan to build the fueling infrastructure of the future.”
However, the news clearly discouraged Volta investors.
VLTA Stock Plummets on Major Leadership Changes
Despite the optimistic words on the recent leadership changes, Volta investors were clearly less confident in the decision. Volta’s drop today seemingly marks the latest in a year of declines for VLTA.
Volta, which only went public at the end of 2020, has seen its share price generally decline from its highs during the first quarter of 2021. From its all-time high of $12.74, VLTA is trading around $3.35 per share after today’s drop.
Volta’s expansive EV network is the company’s historic claim to fame. While still a growing industry, Volta has yet to realize the gains promised in its initial public offering (IPO). Only time will tell where the stock will go from here.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.