Former Icahn employee Daniel Ninivaggi will assume the role of Lordstown Motors' CEO effective immediately
A little over two months after Lordstown Motors Corp's (NASDAQ:RIDE) CEO Steve Burns announced his resignation, the electric vehicle maker has finally named a successor. Daniel Ninivaggi, former CEO of Icahn Enterprises (IEP) will assume the role, effective immediately, while the company continues to face regulatory scrutiny and production challenges.
It looks like Wall Street loves the move, with the equity tacking on 21.6% to trade at $6.70 this morning. Lordstown Motors stock snapped a three-day win streak at the conclusion of yesterday's session, though it still sits above its Aug. 19, all-time low of $4.77. Today's positive price action brings RIDE within a hairs breadth of pressure at the 40-day moving average, though the security has a long way to go to overcome its 72.5% year-to-date deficit.
Lordstown Motors stock could benefit from a short squeeze. While short interest dipped 3.2% over the last two reporting periods, the 30.87 million shares sold short make up a staggering 27.7% of the stock's available float. At its average pace of daily trading, it would take just over two days for shorts to buy back these bearish bets. Lastly, a shift in analyst sentiment would also sent RIDE higher on the charts. Of the five in coverage, four rate the security a "hold" or worse.