Shares in Lordstown Motors Corp. rebounded on Tuesday after reports surfaced that the company has enough money to last nearly another year, and that it will begin building its electric trucks in September.
The Lordstown auto maker (Nasdaq: RIDE) saw its shares tumble on Monday after CEO Steve Burns, founder, chief executive officer and chairman, and Julio Rodriguez, chief financial officer, resigned on Sunday.
The company had been accused of misleading investors and said it was running low on funding.
Burns and Rodriguez were replaced by Angela Strand, who was appointed executive chairwoman until a permanent CEO is named. Becky Roof was named interim CFO. Rick Schmidt remains president of the company.
On Tuesday, Schmidt told a news conference hosted by the Detroit-based Automotive Press Association that the company will begin building its Endurance electric truck in September, and the company has enough cash to last through at least May 2022.
He added that the company had "firm" and "binding" orders on an unspecified number of vehicles.
Shares in Lordstown Motors dropped nearly 19% in Monday trading, but rose on the news of Schmidt's comments on Tuesday, rising more than 11% to close at $10.31. Shares were down slightly in early Wednesday trading.
The company said the Endurance will have a range of 250 miles, the equivalent of 600 horsepower and can tow up to 7,500 pounds.
