Electric Last Mile Solutions (NASDAQ:ELMS) stock is rocketing higher on Friday as investors pump up the shares after its bankruptcy announcement.
Earlier this week, Electric Last Mile Solutions announced a Chapter 7 bankruptcy filing. This will have the company liquidating its assets to pay off creditors before closing down its business.
This comes as ELMS stock went public last year through a special purpose acquisition company (SPAC) merger. It also follows the resignation of the company’s chairman and CEO back in February.
One thing investors will want to note is Electric Last Mile Solutions wasn’t the typical electric vehicle (EV) company. Instead of making its own EVs, it planned to buy them from China and assemble them at a plant in the U.S.
The recent bankruptcy news has ELMS stock seeing incredible volatility. That started with a massive drop after the announcement. However, shares then started to quickly rocket higher in the following days. Considering the company is going bankrupt, this is likely a pump and dump from retail traders looking to make some quick cash.
Backing up this idea is the heavy trading ELMS stock is seeing today. As of this writing, more than 52 million shares of the stock have changed hands. That’s well above its daily average trading volume of about 3.8 million shares.
ELMS stock is up 49.1% as of Friday morning.
There’s more recent stock market news traders will want to read up on below!
We’ve got all the hottest stock market coverage for traders to sink their teeth into today! Among that is what’s happening with shares of ToughBuilt (NASDAQ:TBLT) and Roku (NASDAQ:ROKU) stock, as well as the latest layoffs news. You can find out more on these matters at the following links!
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- Layoffs 2022: 7 Companies Making Major Job Cuts This Week
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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