Executive Summary

Q4 2021 was dominated by governance and accounting issues rather than operating metrics: ELMS announced leadership changes (CEO and Chairman resignations), appointed Shauna McIntyre as Interim CEO, and advised non-reliance on prior financial statements pending restatement .
The company provided only a preliminary cash update for year-end: approximately $132.0–$142.0 million in cash and cash equivalents, including $25.0–$30.0 million of restricted cash, as of December 31, 2021 .
No Q4 revenue/EPS/margin figures or an earnings call transcript were available; the primary catalyst for investor reaction was the restatement announcement and leadership transition rather than fundamentals .
Prior quarter context: ELMS began revenue generation in Q3 2021 with initial Urban Delivery shipments and revised its 2021 production target to 300–500 units amid global supply-chain challenges .

What Went Well and What Went Wrong

What Went Well

Initial deliveries and first-ever Class 1 commercial EV revenue occurred in Q3 2021; management emphasized achieving “scheduled milestones,” including shipments on September 28, 2021 .
Strategic partnerships and supply-chain agreements were secured: battery/component supply with Wuling Motors and CATL; nationwide service with Cox Automotive’s >6,000 centers .
Appointment of Shauna McIntyre as Interim CEO signaled operational continuity; the Board expressed confidence she would “ensure a smooth transition” and “effectively manage the business” .

What Went Wrong

The Board concluded prior financial statements (2020 and 1H/9M 2021) should be restated and no longer relied upon due to issues around certain 2020 equity transactions with executives; material weaknesses in internal controls were anticipated .
Leadership turmoil: CEO James Taylor and Executive Chairman Jason Luo resigned; extensive settlement terms and consulting arrangements underscored disruption at the top .
Nasdaq audit committee independence non-compliance was identified (and subsequently addressed), highlighting governance shortcomings in Q4 .

Financial Results

Note: The company did not disclose Q4 revenue/EPS; only a preliminary cash balance. Q2/Q3 results are provided for context.

Metric	Q2 2021	Q3 2021	Q4 2021
Revenue ($USD Millions)	N/A	$0.136	Not disclosed
Net Loss ($USD Millions)	$8.586	$17.779	Not disclosed
EPS ($USD)	($0.10)	($0.15)	Not disclosed
Total Operating Expenses ($USD Millions)	$7.470	$22.341	N/A
Cash and Cash Equivalents incl. Restricted ($USD Millions)	$217.4	$170.9	$132.0–$142.0 (incl. $25.0–$30.0 restricted)

KPIs and operating context:

KPI	Q2 2021	Q3 2021	Q4 2021
Urban Delivery SOP status	On track to start production by end of Q3	Production commenced; first units shipped Sept 28; company became revenue-generating	Operations continuing; leadership transition; no new production metrics disclosed
2021 Production Target (vehicles)	1,000	300–500 (revised due to supply-chain challenges)	Not disclosed
Binding Order (units)	—	1,000 (national distributor)	—
Total Commitment (units)	—	6,000 through 2022	—
Service network coverage	Cox collaboration (>6,000 centers)	Agreement signed for nationwide service	—
Battery/component supply	Strategic agreements with Wuling Motors and CATL	Signed supply agreements with Wuling Motors and CATL	—

Segment breakdown: Not applicable; no segment reporting disclosed in the company communications reviewed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Production volume 2021	From Q2 2021 to Q3 2021	1,000 vehicles	300–500 vehicles	Lowered
Total Operating Expenses 2021	From Q2 2021 to Q3 2021	$75–$80M	$65–$70M	Lowered
Capital Expenditures 2021	From Q2 2021 to Q3 2021	$25–$30M	$20–$25M	Lowered
Q4 2021 Guidance (overall)	Q4 2021	—	No quantitative guidance; focus on restatement/leadership transition	N/A

Earnings Call Themes & Trends

No Q4 2021 earnings call transcript was filed or available; trends reflect press releases and 8-K disclosures.

Topic	Previous Mentions (Q2 2021 and Q3 2021)	Current Period (Q4 2021)	Trend
Supply chain	Q3: “unprecedented global supply-chain challenges” prompted cut to 2021 production target	Not specifically updated; overall focus shifted to governance/restatement	Operational headwinds persisted; narrative shifted to accounting/governance
Production ramp	Q2: SOP targeted for end of Q3 ; Q3: production commenced and first shipments	No production metrics disclosed; leadership transition	Momentum paused in disclosures
Partnerships	Q2/Q3: Wuling/CATL supply; Cox service nationwide	Not updated	Stable, but overshadowed by restatement
Regulatory/legal	None in Q2/Q3 beyond normal risk language	Non-reliance and restatement; audit committee reconstituted to regain compliance	Deteriorated (governance risk elevated)
Regional footprint	Q2: plans for Shanghai/SF ; Q3: expanded to APAC, CA, Canada	Not updated	Neutral (no new disclosures)
Product pipeline	Q2/Q3: Urban Utility revealed; production targeted 2H 2022	Not updated	Neutral

Management Commentary

“We are thrilled to have achieved our scheduled milestones this quarter, most notably generating revenue from the successful launch and delivery of the first Class 1 commercial EV in the United States.” — James Taylor, CEO, Q3 press release .
“In light of unprecedented global supply-chain challenges, we have made the strategic decision to revise our production target to 300-to-500 vehicles for 2021…” — James Taylor, CEO, Q3 press release .
“She is a proven leader and seasoned industry executive… The Board is confident Shauna will ensure a smooth transition, effectively manage the business, and help chart a path forward.” — Brian Krzanich, Non-Executive Chairman, Q4 press release .
“I am honored to serve as ELMS Interim CEO… we want to assure all of our stakeholders… of our continued focus and dedication to the Company’s ongoing business and mission.” — Shauna McIntyre, Interim CEO, Q4 press release .

Q&A Highlights

No Q4 2021 earnings call transcript was available or filed in the reviewed period; therefore, there are no Q&A highlights to report .

Estimates Context

Wall Street consensus estimates via S&P Global for Q4 2021 were unavailable for ELMSQ at the time of this analysis. The company did not disclose Q4 revenue/EPS, and it advised non-reliance on prior financial statements pending restatement, limiting estimate comparisons .

Key Takeaways for Investors

The primary catalyst was governance/accounting: leadership changes and a restatement process that rendered prior financials non-reliable, with anticipated material weaknesses in internal controls .
Liquidity stepped down quarter-over-quarter: cash including restricted declined from $217.4M (Q2) to $170.9M (Q3), ending Q4 preliminarily at $132.0–$142.0M (incl. $25.0–$30.0 restricted) .
Operational momentum (initial deliveries, order commitments, partnerships) from Q3 is overshadowed by the Q4 restatement and leadership transition; watch for timing and scope of restated filings .
Governance remediation steps included reconstituting the audit committee to regain Nasdaq rule compliance; monitor further Board/committee changes and control remediation progress .
Near-term trading likely hinges on restatement clarity, liquidity trajectory, and whether ELMS can reaffirm a credible production ramp post-transition; no Q4 fundamentals were disclosed .
Supply-chain constraints remain a key execution risk given the prior cut to the 2021 production target and reliance on component/battery partners (Wuling/CATL) .
Absent consensus estimates and disclosed Q4 metrics, investors should focus on governance resolution, restatement timing, and updated operating/cash guidance before sizing positions .

Sources

Q4 2021 8-K and press release: leadership transition, restatement, preliminary cash .
Q3 2021 8-K and press release: initial deliveries, revised production target, cash, net loss/EPS .
Q2 2021 8-K and press release: SOP timing, guidance (OpEx/Capex/production), cash, net loss/EPS .

Electric Last Mile Solutions, Inc. (ELMSQ)·Q4 2021 Earnings Summary