Electric vehicle start-up Lordstown Motors Corp is experiencing a top-level executive shake-up after a board investigation found misleading statements were made regarding its pre-orders, Kallanish understands. 

Effective immediately, ceo Steve Burns and cfo Julio Rodriguez have resigned from the company. Lead independent director Angela Strand will take over as executive chairwoman until a permanent ceo is found, while Becky Roof has been named interim cfo. 

The company characterises the changes as taking place against the backdrop of a “transition from the R&D and early production phase to the commercial production phase of its business,” according to a company statement. 

The changes, however, came immediately on the heels of a report by the board of directors that examined a 12 March Hindenburg Research report claiming a host of tech, timeline, and state-of-the-business questions revolving around Lordstown. 

The board dismissed the worst of Hindenburg’s tech and timeline accusations as false and/or misleading. Its pre-order findings, however, were partially valid, the board says. 

“Lordstown Motors made periodic disclosures regarding pre-orders which were, in certain respects, inaccurate,” the board says, noting that alleged pre-orders from ‘primarily’ commercial fleets were actually from fleet management companies and “so-called ‘influencers’ or other potential strategic partners that committed to attempt to secure pre-orders from other entities, but did not intend to purchase Endurance trucks directly.”

Furthermore, at least one entity demonstrably had no intention to actually buy any of Lordstown’s upcoming Endurance trucks. 

“One entity that provided a large number of pre-orders does not appear to have the resources to complete large purchases of trucks,” the board says. “Other entities provided commitments that appear too vague or infirm to be appropriately included in the total number of pre-orders disclosed.”