TNI || New Delhi || 26th Sept 2021
Lordstown Motors Corp has taken a new CEO on board. Daniel, who is the former employee of investor Carl Icahn will be taking over the reins of the electric truck maker at a time when it is facing challenges in production and intense regulatory scrutiny.
After the announcement was made, shares of Lordstown Motors jumped more than 6% in premarket trading.
Following the board’s conclusion from an internal investigation into the claims made by short-seller Hindenburg Research, the company’s founder and largest shareholder, Steve Burns resigned from his position and has given way to Daniel Ninivaggi to take over.
The company initially warned that it required additional funding and has now has taken aboard veteran Ninivaggi, who has been an integral part of the automotive aftermarket service network & parts distribution business of Icahn Enterprises.
Along with Icahn, Daniel has also served as the chairman of Garrett Motion Inc. and has been the director of prominent companies such as Motorola Mobility, Hertz Global Holdings, and Navistar International.
Not even a month ago, Lordstown had said that a hedge fund had committed to purchase 400 million dollars of its shares over a period of 3 years. The company has, however, struggled with the Endurance pickup truck.
It currently faces scrutiny from the federal prosecutors in Manhattan and also officials from U.S. Securities and Exchange Commission in regards to a special purpose acquisition company.