In the latest episode of the Lordstown Motors saga, it’s been revealed that executives of the struggling electric vehicle startup cashed out a significant sum of their shares ahead of the company’s reporting of its first quarterly earnings in March.

• Five executives at Lordstown Motors collectively sold stock worth $8mn in February, regulatory filings show. The sales were first reported by The Wall Street Journal.

As filings show, Lordstown executives netted millions of dollars even as their company hadn’t delivered a single vehicle. They include;

• John Vo, head of its propulsion division, sold $2.5mn, 99% of his vested equity.
• President Rich Schmidt sold $4.6mn, 39% of his vested shares.
• Three other execs including a finance chief who resigned last week each sold between $250k and $400k.

The stock sales were shortly before Lordstown reported its first earnings results, showing a $101mn net loss in 2020 on only $2.6mn in sales. Understandably that Lordstown is still a fledgling startup, it, however, turned heads earlier this month when it warned it didn’t have sufficient cash to fund production despite raising $675mn from a SPAC merger last year.

• Shortly after Lordstown issued the warning, its CEO and CFO resigned from the company. It appears that the electric car startup is struggling much despite big promises last year that led investors to shower it with $675mn of cash to fund its commercial production.

• The stock sales from executives is the latest episode in the Lordstown saga. Who knows? There may be more to come. The pilot of the saga was fraud accusations from a famous short seller named Hindenburg Research.

Currently, Lordstown Motors is trading at $10.28 a share, with a market cap of $1.8bn. It’s down 50% for the year.

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