Failed 2022

    Electric Last Mile Solutions

    Another SPAC EV fraud: co-founders allegedly bought shares below the IPO price before the merger, then resigned.

    Founded → Closed

    2020 → 2022

    Funding Raised

    $380M

    Industry

    EV/Automotive

    Country

    USA

    IdeaProof AI Failure Score

    82/100
    Market Fit RiskBurn Rate RiskFounder Risk
    Market Fit Risk
    35
    Burn Rate Risk
    80
    Founder Risk
    90

    Full Analysis

    Electric Last Mile Solutions planned to make electric delivery vans for commercial fleets. After going public via SPAC, an SEC investigation revealed that co-founders Jason Luo and Jim Taylor had purchased shares at a steep discount before the SPAC merger — a potential securities violation. Both resigned. The company tried to continue but couldn't raise additional capital and filed for Chapter 7 liquidation in June 2022.

    Could This Failure Have Been Prevented?

    IdeaProof's AI validates market demand, competitive positioning, and business model viability in minutes — catching the exact issues that sank Electric Last Mile Solutions.

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