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Electric Last Mile Solutions plunges after top execs leave in wake of board investigation

Feb. 02, 2022 7:10 AM ETElectric Last Mile Solutions, Inc. (ELMSQ)By: Clark Schultz, SA News Editor21 Comments

Stock market

D-Keine/E+ via Getty Images

Electric Last Mile Solutions (NASDAQ:ELMS) is in freefall after the company's CEO and board chairman have resigned following a special committee investigation into certain sales of equity securities made individuals associated with the EV startup. The

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Comments (21)

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Flipp profile picture
No surprise about CEO, he never stays in one job very long, he lost the job at Karma due to Poor performance, that says it all
Why do people buy on the first day of a drop? They 99% of the time drop further....
Matthew J White profile picture
@panther14 you were not wrong
Blueper profile picture
James Taylor: whispers softly "it's homologation" on his way to federal prison
Jason Luo: whispers softly "it's omologazione" on his way to federal prison
twelve years and four years (Luo is gonna squeal)
I'll be buying at this dip
I suppose if you invested because you liked James Taylor's experience, this would rattle you.
If you invested, like I did, because this company has a huge first mover advantage in a new market (class 1 EV vans), this doesn't change anything but make another buying opportunity.
The company guidance was 300-500 sales in Q4 2021 and 19k vehicle sales in 2022, which translates to over $650m in revenue. At $25m quarterly burn, just a 15% margin per vehicle makes them cash flow positive.
Valuation at $3.66 per share is $453m.
spamoi profile picture
@echochristopher Competition is coming fast and hard though...


@spamoi Different markets. GM and Ford's EV vans are bigger and have a 50% higher price
spamoi profile picture
@echochristopher Yeah it seems to be at the same size of a RAM Promaster van, which will be only available in 2023 in EV form.
So yeah, they have about a year to get their stuff straight up...
Wish to see some reviews and comparison soon!
Before I sell anything, I ask myself, “Are the chances better or worse from here that this stock will outperform the market?” The decision has little to do with how it’s done since I bought it.
Hmm, and the SEC dares to request information on how Bitwise will handle fraudulent activities…how are they not involved in this case?!?
johnny inca profile picture
worth a gamble at 3.5 to hold through 1st earnings update to get the facts
johnny inca profile picture
@johnny inca stopped out.
So disappointed in these rat f*cks. This is exactly the type of thing that makes me want to never invest in stocks again, and just stick to RE that I can control, see, touch, smell, etc. Oh well, lesson learned. Not sure what to do here, I have a sizeable position...shame on me!
@sitecast I would just hold on to those shares. It's a shame this happened, but as of of now the only thing we know is that 7.8M shares will be surrendered no later than April 11. Thus the outstanding share count will be reduced by 7.8M (>6% of the outstanding shares).
fredgwynn profile picture
@sitecast why don’t you invest in REITS instead of tech startups?
I work in RE and have plenty of exposure to that sector via my own deals and friends and family investments. And, I don't just invest in startups...in fact, this is one of 2 I own...but thank you for the advice...may it always be sunny in your neighborhood.
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