Why Is Lordstown Motors Stock Plummeting Again?

Lordstown Motors Corp. RIDE shares have been under pressure since the company flagged a going concern warning. The weakness intensified Monday after the company announced a complete overhaul of its management team.

After staging a recovery Tuesday and Wednesday, the shares are trading lower yet again.

The trigger for Wednesday's decline is an 8-K filing with the SEC in which Lordstown said the purchase agreements for the company's Endurance EV pickup truck its executives mentioned in an online media event Tuesday are a significant indicator of demand — and do not represent "binding purchase orders" or other "firm purchase commitments."

" ... We have engaged in limited marketing activities and we have no binding purchase orders or commitments from customers," the company said.

In the filing, the company also said it has postponed the 2021 annual meeting of shareholders from June 17 to Aug. 19. Additionally, the company announced the hiring of automotive executive John Whitcomb as VP, global commercial operations, effective June 21.

RIDE Price Action: The stock was down 1.04% at $10.67 at last check. 

Related Link: Lordstown Motors Analysts React To Going Concern Warning: 'These Conditions Raise Substantial Doubt'

Photo courtesy of Lordstown Motors.