Former Lordstown Motors CEO Sells Shares Before Dismal Q1 Earns
Lordstown Motors Endurance
Lordstown Motors Endurance | Lordstown Motors
Lordstown Motors reported a first-quarter loss of nearly $172 million and warned investors of doubts about continuing as a "going concern."

Electric vehicle manufacturer Lordstown Motors (NASDAQGS:RIDE) last week reported a first-quarter loss of nearly $172 million and warned investors of “substantial doubt regarding our ability to continue as a going concern.”

An ongoing dispute with its partner and major funder, Taiwanese-based Foxconn Technology Group, regarding additional investment in the company erupted just days before the release of the quarterly results, sending the company’s share price from 52 cents at the end of April to a low of 26 cents last week. The share price closed Monday at 37 cents. 

Throughout the quarter, former CEO Stephen Burns continued to sell his stock in the company, according to a document Lordstown filed with the Securities and Exchange Commission at the close of business Friday.

The filing reported Burns had sold off nearly 10 million shares during the quarter as the share price fell below $1 and now owns nearly 17 million shares, down from the 46 million shares he owned in 2020, when Lordstown merged with special-purpose acquisition company DiamondPeak Holdings to raise substantial new funding.

Burns resigned as CEO in June 2021 after an investigation revealed that he and other company executives lied about the number of preorders Lordstown had for its electric pickup truck.

In another SEC filing last week, Foxconn agreed that it cannot legally walk away from its current funding agreement with Lordstown as the automaker warned Foxconn was preparing to do. (See Lordstown Motors Warns of Bankruptcy in Contract Funding Feud.)

The dispute with Foxconn erupted after Nasdaq removed Lordstown from its main trading chart when the automaker’s share price fell below $1. The company has floated a plan to do a “reverse stock split” in hopes investors will approve it at the company’s annual meeting.

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