Mullen Automotive Inc (NASDAQ:MULN) saw its shares motor ahead on Wednesday after completing the purchase of bankrupt EV start-up Electric Last Mile Solutions (ELMS), paving the way for the company to manufacture its first electric vehicle.

The California-based EV company said it had received approval from the US Bankruptcy Court on October 13 to buy ELMS in a $240 million cash transaction.

The deal includes the acquisition of ELMS’ manufacturing plant in Indiana, which is capable of producing 50,000 cars per year. Mullen also acquired all intellectual property of the defunct auto company.

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The purchase continues Mullen’s push into the EV market following the acquisition of a 60% controlling interest in Bollinger Motors in September, a Michigan-based start-up that aims to build battery-electric commercial trucks and off-road pickups.

ELMS, another Michigan start-up, filed for bankruptcy in June, less than a year after it went public through a $1.4 billion SPAC deal.

Mullen said the deal would accelerate the launch of the Mullen Five crossover, Bollinger B1 SUV and Bollinger B2 pickup by more than 12 months.

While the Mullen Five and Bollinger B1/B2 retail vehicles will be made at the newly acquired Indiana plant, the Mullen class 1 and class 3 commercial delivery vehicles will be assembled at Mullen’s existing facility in Tunica, Mississippi.

The site will become a commercial manufacturing center and will produce all Mullen and Bollinger Class 1 to 6 commercial vehicles, the company said.

In addition to the Mullen Five which is set to enter production in 2024, the company plans to build the Five RS, an “ultra-high-performance EV sport crossover” with 1,000 horsepower, a top speed of 200 mph and 0-to- 60 acceleration under two seconds.

David Michery, CEO and chairman of Mullen Automotive said: “Mullen’s acquisition of Bollinger was one of the largest transactions of its kind in the EV market.”

“Upon closing the ELMS transaction, the company will be in a position to strategically leverage all of its acquired assets to shorten its production path and aggressively expand into the commercial and consumer EV market.”

Shares soared on the news and were up 64.51% at $0.36 on Wednesday afternoon.

Contact Jeremy at [email protected]