Lordstown (RIDE) Surges After Naming Daniel Ninivaggi as CEO

Lordstown Motors (NASDAQ: RIDE) announced today that its Board of Directors has appointed Daniel A. Ninivaggi as CEO and as a member of the Board, effective immediately. Shares of the company surged nearly 30% higher following the news but remain 60% lower year-to-date.

Ninivaggi’s takes over for the company's founder and largest shareholder Steve Burns, who resigned as chief executive officer in June following the board's conclusions from an internal investigation into claims made by short-seller Hindenburg Research.

Ninivaggi is the former CEO of Icahn Enterprises L.P. (Nasdaq: IEP), where he oversaw Icahn Enterprises’ automotive aftermarket service network and parts distribution businesses. Ninivaggi has also served in a variety of senior leadership positions in the automotive and transportation industries.

The company previously warned it needs to raise additional funding. Last month, Lordstown said a hedge fund had committed to purchasing up to $400 million of in shares over a three-year period. Executives said that the firm was exploring other financing options, including debt, and has struggled with the launch of its Endurance pickup 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. 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 assets,” said Daniel Ninivaggi.

“The Board is enthusiastic about Dan’s appointment as CEO. We are impressed with his broad automotive background, track record, strategic thinking, and team-oriented leadership talent. Furthermore, his capital markets expertise and investment proficiency will be invaluable in navigating the company through its commercial ramp-up, capital allocation and growth phase. We unanimously concluded that he has the optimal combination of skills and public company experience to lead Lordstown Motors at this time. On behalf of the entire Board, I’d like to thank Angela Strand who successfully served as Executive Chairwoman during the CEO transition period and will continue as Non-Executive Chair going forward,” said David Hamamoto, Chairman of the Lordstown Board CEO Search Committee.

By Michael Elkins | [email protected]

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