Electric Last Mile Solutions (ELMS) plans to lay off 24% of its staff as it seeks to streamline its business. Reuters reports that the layoffs will allow the commercial electric vehicle (EV) maker to become leaner as it focuses on its core business. ELMS shares fell 7.73% to close at $1.79 on March 4.
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Electric Last Mile Solutions designs, builds, and sells clean, connected, and customized commercial vehicles.
Layoffs and Resignations
The company has yet to ascertain the total cost savings it will achieve with the layoffs. The layoffs come at a time when Electric Last Mile Solutions is struggling with a number of issues, key among them being supply chain hurdles. The company has also confirmed its plans to restate its financial results as of December 31, 2020, and for the first nine months of 2021.
Chief Executive Officer (CEO) James Taylor and Chairman Jason Luo were forced to step down last month following an investigation into share purchases. Since the two resigned, Electric Last Mile Solutions has lost about 68% of its market value.
Stock Rating
Last month, Benchmark Co. analyst Michael Ward downgraded ELMS to a Hold from a Buy and removed his price target.
Consensus among analysts is a Hold based on 7 holds. The average Electric Last Mile Solutions price target of $4.88 implies 172.63% upside potential to current levels.
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