Troy, Michigan-based EV startup Electric Last Mile Solutions (ELMS) will liquidate its assets after filing for Chapter 7 bankruptcy.
ELMS co-founders James Taylor and Chairman Jason Luo resigned from the company in February after they were accused of purchasing company equity without obtaining an independent valuation. Now, according to Bloomberg Business, interim ELMS CEO Shauna McIntyre has decided to liquidate the company’s assets following an internal review of its business and its long-term prospects.
“I’m very disappointed by this outcome because our Electric Last Mile Solutions 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,” McIntyre said in a prepared statement. “Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us.”
ELMS had planned to import the components for battery-electric fleet vehicles from China and assemble them at the former GM plant in Mishakawa, Indiana for consumption in the United States. Its first vehicle was called the Urban Delivery EV and is based on an existing Chinese van platform from a company called Sokon. The company also had plans to introduce a Class 3 EV commercial heavy truck called the Urban Utility EV, as well.
ELMS went public in June of 2021 after it merged with a blank check company called Forum Merger III Corporation. According to Bloomberg, the start-up is one of the first auto-focused “Special Merger Acquisition Companies” to go belly up amid the recent economic downturn. Other auto industry SPAC startups include Nikola, Canoo, Lordstown Motors and Fisker.
The departure of Electric Last Mile Solutions means there is one less competitor to GM’s own BrightDrop logistics sub-brand, which has already begun deliveries of its Zevo 600 electric fleet van. BrightDrop customers include FedEx, Merchants Fleet and Walmart. Some of the brand’s vehicles were also recently spotted at an Amazon facility in the U.S., fueling speculation it may sign on with the e-commerce giant in the near future, too.
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Comments
“Other auto industry SPAC startups include Nikola, Canoo, Lordstown Motors and Fisker”
I think you meant, “Other future bankruptcies”.
One down. 5 more to go.
Next up Lordstown Motor.
Isn’t it 3 down? Nikola, last mile, Anptera. Lordstown is in life support. Tesla still isn’t really making money. Fiskers is all but dead. Now we’re just waiting for legacy manufacturers to kill off thier EV plans.
You mean Aptera? They are still on track (and raising money) to start building within a year or so. It remains to be seen how that plays out.
Nikola is probably the next to go. Or Lordstown, although they made a weird deal with Foxconn.
There are other small EV companies like Arcimoto and ElectraMeccanica that don’t seem to have very appealing products.
We’ll see.
i hope the purge takes out the crpyto/nft trash too.
The free money economy has ended.
Time for some serious pain for the EV/NFT/Crypto cultist.
Did they really, actually TRY? Or, did they get some sort of “grant” money from the tax payers, along with various tax sleights-of-hand, and then pulled the plug leaving many holding the bag?
I have grown cynical in my old age, so that is why I ask.
Rivian just announced delays of some model or another; I see them being next.