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Why Solid Power Stock Crumbled Today
Solid Power (NASDAQ: SLDP) was hardly looking like a powerful stock on Monday. The solid-state battery developer's price fell by nearly 10% on news of a departure from the company's C-suite. That decline stood in marked contrast to the performance of the S&P 500 index, which crept 0.1% higher on the day.
A veteran executive steps down
Late on Monday, Solid Power revealed in a regulatory filing that COO Derek Johnson has informed the company he will step down from his position, effective this coming Feb. 1. He won't step away entirely, as he has signed an agreement to provide "transition consulting services" to a Solid Power subsidiary from that date until May 1 of this year.
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Johnson's departure certainly feels like a blow, as he has been with Solid Power for almost the entirety of this decade. He came to the company in January 2020, following a stint as vice president of global research and development of fellow vehicle battery developer A123 Systems. Prior to that, he was A123's executive director of research and development.
In other words, Johnson is a seasoned executive in the highly niche auto battery field, so he probably won't be easy to replace.
Question marks for the present and future
In the regulatory filing, Solid Power did not provide the reason (or reasons) for Johnson's move. It also did not address the matter of a successor, which is likely one reason for the Tuesday stock sell-off. Investors might have overreacted a bit, as any company is more than just one manager or management team. Still, it's understandably concerning when a clearly qualified and experienced executive departs.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
