Lordstown Founder And Ex-CEO Cashes Out Remaining Stake In EV Startup
Stephen Burns resigned as Lordstown CEO in June 2021.
Stephen Burns, the ex-CEO and founder of Lordstown Motors, has sold all of his remaining stock in the EV startup. As per a regulatory filing, Burns sold his last shares between May and June in three separate transactions.
Burns has been gradually offloading Lordstown stock since November 2021, making $66 million to date. Burns resigned from his position as Lordstown CEO in June 2021 amidst rumors that he and several other executives were inflating order numbers for the firm's first vehicle, the Endurance pickup truck.
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Targeted primarily at fleet customers, the Endurance was revealed back in 2020 and reached production in September 2022. That said, financial constraints have heavily impacted production and just a handful of trucks have reached customers so far.
The Endurance also heavily underperformed when its range was recently tested. Despite being powered by a 109-kilowatt-hour (kWh) battery pack, the Endurance only delivered 174 miles of EPA range. Lordstown originally anticipated that its truck would have an EPA rating of roughly 250 miles.
The Endurance has four electric motors, generating 550 horsepower in total. A capable work vehicle, the Endurance can tow up to 8,000 pounds. It can also launch from zero to 60 mph in 6.3 seconds, which is quick for a vehicle of its size but still significantly slower than other electric trucks like the Rivian R1T.
From a pricing perspective, the Endurance doesn't make much sense for most buyers. Its reported starting point of $65,060 makes it far more expensive than the entry-level Ford F-150 Lightning, and almost on par with the faster and more luxurious Rivian R1T. Given the lack of funding and brand trust it will be interesting to see if the Endurance, and Lordstown Motors in general, can compete in the long run.
Do you think Burns made the correct decision to cash out? Let us know your thoughts in the comments section below.
Source: Reuters
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