Electric Last Mile Discloses SEC Probe, Warns of Cash Crunch (1)

Electric Last Mile Solutions Inc. said it’s under investigation by the U.S. Securities and Exchange Commission, just weeks after both its chairman and chief executive officer resigned following an internal probe of improper stock purchases.

The electric-vehicle startup learned of the investigation by the SEC’s Division of Enforcement on March 7, according to a regulatory filing Friday. The company also said it’s withdrawing previous guidance and will need to raise cash to get vehicles to market.

The disclosures mark a long fall for the company, which bought a former Hummer factory and outlined plans to sell delivery vehicles to ...