Lordstown Motors Lower in Premarket Trade

© Reuters

By Dhirendra Tripathi — Lordstown (NASDAQ:) shares were down 1.4% in premarket trade on Tuesday a day after the troubled electric truck maker announced its CEO and CFO were resigning with immediate effect.

Monday’s announcement sent shares skidding 18.8% and came less than a week after the company warned investors it was close to running out of cash and may go out of business next year.

It said it did not have enough funding to start full commercial production of its planned electric pick-up truck in September and warned there is now “substantial doubt” about its ability to stay in business over the next 12 months.

Also Monday, R.F. Lafferty analyst Jaime Perez downgraded Lordstown from Hold to Sell with a price target of $3.00, down from $6 per share.

“With the level of uncertainty increasing in the future of Lordstown, we find it prudent to lower our rating to Sell. In addition, we reduced our price target by $6 to $3 per share,” the analyst said.

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