Mullen Automotive said Wednesday it has acquired Electric Last Mile Solutions, paving the way for a California-based startup to manufacture the first electric car.
The $240 million cash purchase gives Mullen the ability to build up to 50,000 electric vehicles annually, accelerating the launch of the Mullen FIVE, Bollinger B1 and B2 retail vehicles. The deal also gives Mullen control of ELMS’ stock, intellectual property rights, and the plant in Mishawaka, Indiana.
Mullen, which went public in its 2021 SPAC merger, is in a growth position, having in September acquired a 60% controlling stake in Bollinger Motors, a Michigan-based startup that aims to build commercial battery-powered trucks and off-road pickups. Electric Last Mile Solutions, another Michigan startup, filed for bankruptcy in June, less than a year after it went public with a $1.4 billion SPAC deal.
Many of the startups that went public in high-profile reverse mergers over the past two years have faced bankruptcy, SEC scrutiny or cash crises. The purchase of ELMS will allow Mullen to “shorten its production path and aggressively expand into the commercial and consumer electric vehicle market,” said David Mishri, CEO and chairman of Mullen Automotive.
The automaker plans to build the Mullen FIVE, as well as the expected Mullen Class 1 and Class 3 commercial delivery vehicles next year, at its plant in Tunica, Mississippi. In addition to the Mullen FIVE scheduled to enter production in 2024, the company plans to build the Five RS, a “super-performance sports EV crossover” with 1,000 horsepower, a top speed of 200 mph and acceleration from 0 to 60 in under two seconds.
Originally published at San Jose News Bulletin
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