Shares of Lordstown Motors surged Thursday after the embattled electrical car start-up named Daniel Ninivaggi, a longtime automotive veteran and former chief of Icahn Enterprises, as its new CEO.

The risky inventory was up by as a lot as 41.4% in intraday buying and selling earlier than leveling off to about $6.40 a share, a rise of 16.2% Thursday afternoon. The inventory has ranged from a low of $4.77 a share to as excessive as $31.80 a share through the previous 52 weeks.

Ninivaggi downplayed the inventory’s Thursday efficiency, telling CNBC that he is targeted on attaining short-term aims that can solidify the corporate for the long-term.

“I do not care concerning the inventory value, day-to-day. However, we undoubtedly must work on investor confidence. And we try this by delivering on our manufacturing plan and getting by all of our testing and certifications,” he mentioned throughout a cellphone interview Thursday.

Ninivaggi, whose annual base wage will likely be $750,000, mentioned he doesn’t plan to alter the corporate’s beforehand introduced targets or plans at this level.

Ohio-based Lordstown Motors is but to provide a saleable car. It expects to start restricted manufacturing of its first product, an electrical pickup truck referred to as the Endurance, in late September, adopted by car validation and regulatory approval in December or January. Gross sales and deliveries will then observe, in line with Ninivaggi.

“Now we have got to execute and get this truck out the door,” he mentioned. “That is what I am targeted on. It is not attractive, however, we have to get the truck out the door, and ship efficiency, and commercialize it.

We all know we have got to truly vote as a result of we received to get this, this truck out the door.

The appointment of Ninivaggi, whose expertise previous to working for billionaire Carl Icahn was largely in automotive suppliers, is efficient instantly, the corporate mentioned. He’ll retain his place as chairman of auto provider Garrett Movement, in line with a Lordstown spokeswoman.

Ninivaggi, 57, mentioned he hasn’t and does not plan to strategy Icahn as a possible investor within the firm. In Could, Lordstown mentioned there was “substantial doubt” about its capability to proceed as a going concern within the subsequent yr due to issues funding the manufacturing of its car. It is presently searching for further funding.

Ninivaggi replaces firm founder Steve Burns, who left the automaker in June following an inside investigation discovering “points concerning the accuracy of sure statements concerning” Lordstown’s preorders, particularly the seriousness of the orders and who was making them.

“The Board is keen about Dan’s appointment as CEO. We’re impressed together with his broad automotive background, observe document, strategic pondering, and team-oriented management expertise. Moreover, his capital markets experience and funding proficiency will likely be invaluable in navigating the corporate by its industrial ramp-up, capital allocation and development section,” David Hamamoto, chairman of the Lordstown Board CEO Search Committee, mentioned in a press release.

The inner probe was prompted after claims made by quick vendor Hindenburg Analysis that Lordstown misled buyers. The report prompted investigations by the Justice Division and the Securities and Alternate Fee.

Lordstown went public by a particular function acquisition firm, or SPAC, in October. It’s amongst a rising group of EV start-ups to go public or announce plans to take action with SPACs.

Many of the SPAC offers have been initially celebrated by buyers, sending shares by the roof and making some founders millionaires, if not billionaires, in a single day. However the tides have turned towards lots of the firms after crackdowns this yr by the SEC, together with investigations, warnings to buyers and potential modifications to accounting pointers.