Solid Power (SLDP) Stock Falls Amid CEO Transition
Solid Power’s (NASDAQ:SLDP) chief executive is retiring, but SLDP stock traders aren’t throwing a going-away party today. Instead, they’re dumping their shares, perhaps because there’s some uncertainty involved with this C-suite transition. At the moment, Solid Power hasn’t identified a permanent replacement for the CEO position.
Solid Power develops solid-state battery cells for electric vehicles (EVs). It’s a competitive industry, and Solid Power is operating during a tough time for the economy. Therefore, this might not be an ideal time for Douglas Campbell to retire as CEO of Solid Power.
Campbell is retiring, however, and that’s probably a hard pill for some loyal fans of the company to swallow. After all, Campbell co-founded the company way back in 2011 and oversaw “its successful de-SPAC transaction in 2021,” according to Solid Power Lead Independent Director John Stephens.
In other words, Campbell has been a foundational part of Solid Power’s growth story for over a decade. It’s understandable, then, if financial traders are concerned about the company’s future without Campbell.
What’s Happening With SLDP Stock?
That said, it might surprise you to discover the SLDP stock dropped 25% as of 11:00 a.m. Eastern today. That’s a severe reaction to a CEO change, as it’s not unusual for businesses’ executives to retire eventually and be replaced.
Here’s what’s likely bothering today’s investors. Solid Power has identified an interim chief executive, David Jansen. He’s the company’s current chair and president.
Jansen is only a temporary replacement, though. Solid Power still has the daunting task of finding and installing a new, permanent CEO.
Again, the timing isn’t ideal for this. SLDP stock has already down year-to-date as macroeconomic conditions have made it difficult for small-to-medium-sized businesses like Solid Power to succeed.
There may be a buying opportunity here, as a relief rally might ensue when Solid Power announces its permanent replacement for Campbell. Until then, however, anxiety could prevail, leading to potential further losses for Solid Power investors.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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