Lordstown Motors (RIDE) Stock: Why It Dropped

​Key Points

• Investors Expect the Fed to Rollback Pandemic-Era Favorable Policies
• Stripe's Upcoming IPO Sent Shopify's (SHOP)'s Stock Up by More than 4%
• EV Maker Lordstown Motor's (RIDE) Stock Sank to Near Its All-Time Low After Its CEO and CFO Resigned​

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​Overall Market

Investors Expect the Fed to Rollback Pandemic-Era Favorable Policies

The stock market indices started with mixed results. 

After last week's volatile sessions, the markets set a new record on Monday. Technology stock overperformed, with the Nasdaq index rising by 0.74%, and the S&P 500 index reached a new record high for the third session in a row. With the inflation rate above the Fed's target and the steady decline in the number of new jobless claims, investors believe the Fed’s officials might start rolling back pandemic era policies. This is something to watch in the next few days. 

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What's Up

Stripe's Upcoming IPO Sent Shopify's (SHOP)'s Stock Up by More than 4%

Shares of Shopify (SHOP) were up by more than 4% on Monday. After news that the credit card processor Stripe would make its debut on the public markets, Shopify’s investors were pleased to remember the company is an investor in Stripe's funding round. Although the investment didn’t grant Shopify a controlling interest, the markets expect Stripe’s valuation to increase further than its current $94 billion. That would represent a sweet return over investment for Shopify.

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What's Down

EV Maker Lordstown Motor's (RIDE) Stock Sank to Near Its All-Time Low After Its CEO and CFO Resigned

From the list of loser stocks for the day, shares of Lordstown Motors' s (RIDE) were down by more than 18% on Monday. The company announced its CEO and CFO have resigned due to a board of directors investigation. Once hovering above $31 per share, the EV maker’s stock is now not too far from its all-time low of $6.69 per share. 

The allegations are against the CEO and the CFO, accusing them of exaggerating the company's Endurance pickup truck pre-orders. Unfortunately, it seems that things are going from bad to worse for Lordstown. 

If you remember, EV stocks were some of the most hyped stocks in 2020. Negative events such as what's happening for Lordstown Motor shouldn't cloud your judgment about the future of EVs. Only in Q1 of 2021, the number of electrified vehicles jumped by 81% in the U.S. The world's transition to electric vehicles has just begun. Invest for the long-term in EV stocks that have a solid balance sheet and track record of success, and you'll do fine. 

Let me create a watchlist for you. I go to Stock Card's Screener page, type in electric vehicles in the search bar, and narrow down the search to companies with no cash concerns and a strong sales track record. The result is a list of 9 stocks that you could use to start your EV portfolio. 

Get the Strong EV Stocks watchlist: Get the List

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