Dive Brief:

• Lithium battery maker Enovix named its CFO Ryan Benton to the role of interim CEO after top executive Raj Talluri resigned to take another opportunity, according to a Monday press release and securities filing.
• Benton will remain the business’ CFO and assumed the interim role effective Aug. 13, according to the filing with the Securities and Exchange Commission. Enovix is conducting a “throughout search” of both internal and external candidates to fill the seat permanently. In association with Talluri’s resignation, Enovix also appointed T.J. Rodgers, its chairman and largest shareholder, to the role of executive chairman effective immediately, according to the Monday release.
• During a Monday webcast, Rodgers sought to reassure analysts and investors that the company’s growth map remains unchanged. “What is changing is a single position, an important one, of course, not minimizing it,” Rodgers said according to a transcript. “What is not changing, [is our] strategy and product road map.

Dive Insight:

The company did not detail any compensation arrangements associated with Benton’s interim appointment in its Monday SEC filing. Benton has served in the top finance seat for the Fremont, California-based business, which creates lithium-ion batteries for smart device wearables, smartphones and other products, since August of last year, according to his LinkedIn profile.

He has spent his three-decade career in the technology and semiconductor industries, including as CFO and as a board member for semiconductor maker Revasum. During the investor call, Benton likened the interim appointment at Enovix to his past experience at Exar Corporation, where he spent five years as CFO before there was a CEO change and Benton stepped in as its CEO, he said.

“What I think I did well there was to get the team to come together and work as a team and improve execution, not only speed of execution, but the results,” Benton said Monday. “We put a lot of points on the board and ultimately delivered a really nice return for the shareholders.”

He is looking to achieve the “exact same thing” at Enovix, focusing on building growth across the company’s three main markets in a “disciplined, efficient, financially prudent way,” he said.

Executives during the Monday webcast sought to emphasize the company’s solid results for its second quarter, with Rodgers pointing to key developments in Enovix’s batteries previously reported for its second quarter which provide opportunities for growth. Reporting its Q2 earnings on Aug. 12, Enovix said the company had completed key international safety certifications for its smart eyewear cells and battery packs and achieved significant results for a battery life cycle test for a lead customer.  

“My point here is I hope the CEO transition does not distract investors from the Enovix Q2 '26 event of the decade,” Rodgers said Monday. “I've worked 14 years to get cycle life on this battery to work. And we finally got it. And that's the headline. That should have been like America wins World War II. And instead, this is a distraction that's way less important than an event that really defines the company.”

Enovix shares fell more than 13% Tuesday to a record low of $12.52 per share following the CEO transition news. The drop continues a steep decline in the company’s value this year, which has seen its share price fall by more than 60% as it continues to face challenges while trying to ramp up its battery manufacturing processes.

Although it reported a 21% jump in revenue for the quarter ended July 5, which reached about $9 million, Enovix also recorded a $43 million net loss for the period, according to its earnings report. Year-to-date, the company’s net loss is approximately $81 million, according to the report.

Executives including Benton and Rodgers on Monday highlighted plans to continue ramping up manufacturing capacity and to refocus on capital discipline, including putting a renewed spotlight on investor relations and rightsizing the company through what Rodgers termed as a “requisition auction” process, where responsibilites left vacant in the normal course of business are “auctioned off” to executive staff.

Enovix also reaffirmed its previously issued guidance for its third quarter, expecting revenue of between $9 million to $10 million, and a lower net loss of between $29 million to $32 million, according to the Q2 release.

“The board will run a deliberate search for a permanent CEO with no artificial deadline,” he said. “That is if we don't find a hero, we're not going to act, especially if the team we've got here is working. Meanwhile, the company needs to stay focused on execution” for its customers, factory delivery targets and financials, he said.