EV-truck tech startup Electric Last Mile files for bankruptcy; plans to liquidate
Electric Last Mile Solutions (ELMS), an EV-truck tech startup focused on defining a new era by transforming commercial fleets to drive e-mobility, has filed for Chapter 7 bankruptcy. In an announcement on Sunday, ELMS said it’s planning to liquidate the company after a review of its products and commercialization plans.
The announcement comes just three months after the beleaguered company came under the Securities and Exchange Commission (SEC) investigation in March. In February, ex-CEO James Taylor and ex-Chairman Jason Luo also resigned from the company following a board investigation that found the two had purchased heavily discounted shares of company stock pre-SPAC merger.
The bad news didn’t stop there. According to the SEC filing, the Michigan-based maker of electric commercial vans also announced it was laying off 50 employees, about a quarter of its workforce, in order to “streamline its cost structure” for its core business,
“The compound effect of these events, along with a pending SEC investigation initiated this year, made it extremely challenging to secure a new auditor and attract additional funding,” ELMS said in a statement on Sunday.
“I’m very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation,” Ms. McIntyre said in a press release.
“Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us. I could not be prouder of what our team has been able to accomplish under very challenging circumstances. This is a viable and essential technology, and I am confident that many of our talented employees will play a future role in this energy transition effort.”
“For the past several months, the ELMS board and the new ELMS leadership team have worked nonstop to address legacy financial, governance and operational matters at the Company, and enormous progress was made, including towards vehicle certification” said Brian Krzanich, ELMS Board Chair and former CEO of Intel. “Therefore, it’s extremely frustrating that we must take this route, but it was the only responsible next step for our shareholders, partners, creditors, and employees.”
Founded in 2020 by James Taylor and Jason Luo. ELMS is focused on defining a new era in which commercial vehicles run clean as connected and customized solutions that make our customers’ businesses more efficient and profitable. ELMS’ first vehicle, the Urban Delivery, is anticipated to be the first Class 1 commercial electric vehicle in the U.S. market.