The electric car start-up Electric Last Mile Solutions files for bankruptcy

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The ELMS Urban Delivery, due to launch later this year, is expected to be the first commercial Class 1 electric vehicle in the US market and will be produced at the company’s Mishawaka, Indiana, facility.

Electrical solutions for the last mile

EV startup Electric Last Mile Solutions announced late Sunday that it plans to file for bankruptcy through a merger with a special purpose vehicle less than a year after going public.

The Michigan-based electric utility vehicle maker said in a press release that interim CEO Shauna McIntyre and its board decided on Sunday to file for Chapter 7 bankruptcy protection, which allows it to liquidate its assets, following a “comprehensive review.” of the company’s products and commercialization plans” no better option emerged for stakeholders.

ELMS’ IPO in late June 2021 came amid a wave of SPAC deals that took EV manufacturers public. The company is the first of these post-SPAC electric vehicle makers to announce it will file for bankruptcy.

McIntyre has served as interim CEO since February, when founder and chairman Jason Luo and then-CEO Jim Taylor left the ailing start-up after an internal investigation found the company’s previous financial statements to be unreliable.

ELMS said in a statement that these executive departures and a related Securities and Exchange Commission investigation have made it “extremely difficult” to secure additional funding.

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