Shares of EV start-up Electric Last Mile plummet by more than 50% after CEO, chairman resign

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Shares of EV start-up Electric Last Mile plummet by more than 50% after CEO, chairman resign
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The resignations follow an internal probe into share purchases made by the cofounders before the start-up went public.

Shares of ELMS were down by as much 53% during intraday trading Wednesday before closing at $2.71 a share, down by 51.5%.

ELMS said an internal investigation by a special committee of the board found that shortly before the company announced an agreement to go public in December 2020, some executives, including Taylor and Luo, purchased equity at substantial discounts to market value without obtaining an independent valuation.

The stock was downgraded by several equity analysts Wednesday including Cowen's Jeffrey Osborne and D.A. Davidson & Co.'s Michael Shlisky. Both cited the loss of experienced executives rather than any internal problem with the company for the downgrades. ELMS declined to comment more about the investigation outside of its press release and a public filing to the SEC.Board member Shauna McIntyre, a former chief of staff at Google's consumer electronics division, was named interim CEO. Brian Krzanich, former CEO of automotive retail software provider CDK Global, was named chairman.

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