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.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »

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.

Don’t miss this second chance at a potentially lucrative opportunity

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

• Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $345,467!*
• Apple: if you invested $1,000 when we doubled down in 2008, you’d have $44,391!*
• Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $453,161!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.

See 3 “Double Down” stocks »

*Stock Advisor returns as of January 13, 2025

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.