Shares of Lordstown Motors (NASDAQ:RIDE) have gone through ups and downs today after a wide-sweeping series of leadership changes, including the appointment of a new CEO, company President Edward Hightower. Currently, RIDE stock is up about 1% so far today.
This morning, the Ohio-based electric vehicle (EV) startup made a stunning announcement detailing its recent executive appointments. Starting at the top, Hightower has been named CEO effective immediately. Daniel Ninivaggi, appointed CEO last year, stepped down from the role and was elected to serve as Executive Chairman.
Additionally, Dr. Donna Bell, a 30-year automotive veteran and long-time Ford (NYSE:F) employee, was appointed as an Executive Vice President. Finally, Jane Ritson-Parsons will step down from her current position as Chief Commercial Officer to serve in an advisory capacity.
The changes are both substantial and brisk, given the resignation of former CEO Steve Burns just last year. Burns’ departure came as something of a shock amidst liquidity concerns in 2021. Burns was, at the time, the company’s largest shareholder.
Today’s leadership changes seemingly read as a positive sign for investors, however.
RIDE Stock Climbs on New Leadership
Lordstown’s somewhat turbulent, but ultimately positive performance today comes as little surprise. Last year, investors were none too pleased with the conditions surrounding Burns’ departure.
Indeed, RIDE stock suffered defeat after defeat in mid- to late 2021, resulting in it shedding most of its value. The company fell under a press firestorm after a scathing report from Hindenburg Research. The short-selling firm declared the EV startup a “mirage” of impossible promises.
Analysts on the report found the company’s promises to customers were far beyond its current capabilities, and accused Lordstown of grossly misrepresenting its preorder numbers. The resulting selloff sent RIDE shares plunging, and ended up being the catalyst that pushed Burns out of leadership.
Lordstown stock reached its highest level ever in September 2020, close to $30 per share. Today, RIDE is trading around $1.75.
Today’s management changes haven’t read as a strong sign for the company. However, should Lordstown shares stay up today, investors could read today’s price action as a win.
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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.