What happened
Shares of Romeo Power (RMO) are sinking amid a day of sell-offs for the broader market. The electric vehicle-focused battery-technology stock was down roughly 10.7% in the daily trading session as of 3:30 p.m. ET on Tuesday, while the S&P 500 index's level had slipped roughly 1.7%.
In addition to bearish pressures impacting the market, Romeo Power stock also seems to be losing ground due to a recently announced change for its management team. The company published a press release today announcing that Criswell Choi will be stepping down from the chief operating officer (COO) role and is set to be replaced by Anne Devine.
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So what
Romeo Power's recent press release stated that Anne Devine will take over the COO position roughly a month from today. As the new COO, she will manage operating and production capabilities, and expansion initiatives. Choi is set to remain in the role for a four-week transitional period. The company also announced that Rose Rogers is stepping into the chief people officer role and will be heading up its human resources department.
The last year has been a challenging one for Romeo Power, and shareholders have been left waiting for a stock turnaround that has yet to materialize. With the company announcing a change for a key management position, the business may be better positioned to move in a new direction, but it's not surprising that investors are antsy about the move on a day when the broader market is seeing significant sell-offs.
Now what
Romeo Power was taken public through a special purpose acquisition company (SPAC) merger late in December 2020. The stock is now down roughly 91% since market close on the day of the merger and 87% over the last year.
Romeo Power now has a market capitalization of roughly $375 million and is valued at approximately 4.7 times this year's expected sales. Battery technology is central to the electric vehicle revolution and other green energy trends, but competition is mounting in the space, and it's not clear that the company will be able to score wins with key auto manufacturers.
