News of Lordstown Motors (NASDAQ:RIDE) forcing its CEO and CFO out of the company is tanking RIDE stock today. This comes after an independent investigation sponsored by the Board found out that the company inflated its pre-order numbers. When you pile this news on top of the fact that the company doesn’t have enough cash to sustain themselves, the future of this company looks incredibly bleak.
I’d go as far as to say that this stock is done.
Last week, Lordstown announced that they may not have adequate cash to keep the lights on. Now, the CEO and CFO are ousted on fudged numbers.
As Lordstown Motors shares slide 20% this morning, it’s time to throw in the RIDE stock towel.
RIDE Stock: The Full Story
A few months back, short seller Hindenburg Research said that the company was inflating its pre-order numbers in order to inflate its stock. The Lordstown Board proceeded to launch an independent internal investigation into the matter.
And that investigation did “identify issues regarding the accuracy of certain statements regarding the Company’s pre-orders.”
The CEO and CFO were held accountable, and they got the boot.
Now, we’ve never been big fans of Lordstown’s management team. We even informed readers last week that this was one of the weakest management teams in the EV sector.
Today’s findings prove we’re right. We think the management team got so desperate to compete with the more capable EV companies that they started exaggerating their numbers.
The Bottom Line on RIDE Stock
This is the nail in the coffin for Lordstown Motors. Moving forward, who will want to work for this company? Their name is marred because they lied about their numbers, and they also don’t have enough cash to fund the business.
They also don’t have a working, commercially viable product, let alone a CEO or CFO.
No one will want to work there. A lack of talent will result in a lack of progress. And the company will inevitably wind up in the EV graveyard.
Ride stock is going to zero.
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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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