Lordstown Motors (RIDE) - Get Lordstown Motors Corp. Class A Report shares soared the most in ten months Thursday after the beleaguered electric carmaker named former Ican Enterprises boss Daniel Ninivaggi as its new CEO.
Ninivaggi replaces Steve Burns, who resigned in early July -- along with CFO Julio Rodriguez -- . Lordstown called the report "in significant respects false and misleading" but nonetheless conceded it raised issues regarding the accuracy of Lordstown statements on pre-orders of the company's flagship Endurance electric truck.
“I believe the demand for full-size electric pickup trucks will be strong and the Endurance truck, with its innovative wheel hub motor design, has the opportunity to capture a meaningful share of the market," Ninivaggi said. "With an absolute focus on execution, I look forward to working with the talented Lordstown management team, our suppliers and other partners to bring the Endurance to market and maximize the value of our asset."
Lordstown shares were marked 25.7% higher in early trading, the biggest single-day gain since November of last year, following news of Ninivaggi's appointment to change hands at $6.92 each.
Hindenburg alleged in March that Lordstown is an "electric vehicle SPAC with no revenue and no sellable product" that it alleged had "misled investors on both its demand and production capabilities."
"The Special Committee’s investigation concluded that the Hindenburg Report is, in significant respects, false and misleading," Lordstown said in a statement. "In particular, its challenges to the viability of Lordstown Motors’ technology and timeline to start of production are not accurate. The investigation did, however, identify issues regarding the accuracy of certain statements regarding the Company’s pre-orders."