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Lordstown Motors Jumps on Binding Orders for Pickup Truck

Lordstown Motors president says the company has 'enough orders for production for '21 and '22.'

Lordstown Motors  (RIDE) - Get Report shares jumped on Tuesday after the electric-truck maker said it had firm and binding orders for the first two years of production of its pickup truck.

The report comes one day after Lordstown Motors said two top executives would step down.

Shares of the Lordstown, Ohio, company at last check were 10% higher at $10.18.

"Currently, we have enough orders for production for '21 and '22," President Rich Schmidt said at an Automotive Press Association event in Detroit, Reuters reported. "Those are firm orders we have for those two years."

Asked if they were binding orders, the executive said, "I don't know the exact facts of the legal aspect of that, but they are basically binding orders that are committed here in the last two weeks, reconfirmed orders. They're pretty solid, and I think that's on the light side or conservative side."

Schmidt also said Lordstown will seek additional funds from General Motors  (GM) - Get Report and other early investors. GM owns a small stake in the startup.

On Monday, Lordstown Motors said that Chief Executive Steve Burns would step down following an independent investigation into allegations made by short-seller Hindenburg Research that called the company a "mirage."

Hindenburg Research put out the sharply critical report in March, declaring that “Lordstown is an electric vehicle SPAC with no revenue and no sellable product, which we believe has misled investors on both its demand and production capabilities."

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Burns, as well as Chief Financial Officer Julio Rodriguez, will resign following the publication of what Lordstown called an investigation by a special committee into the Hindenburg report.

The company said the report was "in significant respects false and misleading" but nonetheless raised issues regarding the accuracy of Lordstown statements on pre-orders of the flagship Endurance electric truck.

Angela Strand was named executive chairwoman and will "oversee the organization’s transition until a permanent CEO is identified," Lordstown said. Becky Roof was named interim CFO.

Strand said in an opening statement that the company's plan remains to start limited production of the truck in late September.

Lordstown Motors has been dealt of series of blows over the past few months.

Last week, it warned in a regulatory filing that it might not be able to continue as a going concern.

In May, Lordstown said 2021 production of its flagship tuck would be around half its previous forecasts.

The electric-truck maker in March reported a wider fiscal-fourth-quarter loss, as expected, and disclosed a Securities and Exchange Commission probe arising from the Hindenburg report.