Proterra becomes the latest EV innovator to file for bankruptcy protection

August 8, 2023 by admin 29 Comments

It’s a tale as old as time… well at least for the past fifteen years or so when we look at the EV industry. EV battery and vehicle platform specialist Proterra is the latest company to join an infamous list of electrified tech companies who have filed for Chapter 11 bankruptcy. What does this mean for the other companies dependent on Proterra’s EV tech?

Proterra Inc. (PTRA) is (was?) an American automotive and energy storage developer that would be celebrating two decades in the industry next year. We at Electrek have contributed consistent coverage of the California-based company over the years through its countless ventures in electrification.

This included vehicle launches like its ZX5 Max electric bus last year and the rolling out of the first EV battery packs off the assembly lines at its latest production facility in South Carolina. In addition to its own vehicles, “Proterra powered” EVs like Thomas Built Buses have already eclipsed 1 million miles driven to date.

Needless to say, Proterra has its eco-friendly fingerprints on a myriad of commercial vehicles and machines around various segments, but will all that progress fade into its legacy now that it has filed for bankruptcy protection?

Proterra joins the Chapter 11 bankruptcy list

After the NYSE bell rang Monday evening, Proterra quietly and voluntarily filed for Chapter 11 bankruptcy, declaring its assets and liabilities somewhere in the range of $500 million to $1 billion. Per Reuters, the company had a market value of $362 million as of Monday’s close, but its shares nearly halved in value following the news.

Less than a month ago, Proterra was celebrating the opening of the largest electric bus charging center in North America alongside partner ABC Companies, but the EV battery and platform developers funding woes have been public knowledge for some time now, long before any mention of bankruptcy.

Earlier this year, Proterra shared a business shift that combined battery and bus production at its South Carolina facility alongside job cuts to attempt to cut costs. Like many smaller companies in this industry, supply chain constraints, fickle demand, and the exorbitant amount of funding needed to scale proved to be too much. Proterra CEO Gareth Joyce said as much in a statement:

We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale.

Despite filing for bankruptcy protection, Proterra says it will continue to operate it business as usual but will file the necessary motions with the appropriate court to access its existing capital in order to continue operations. No word yet on whether the company will put itself up for sale, but it would be a shame to see a name like Proterra join the likes of Lordstown Motors… especially after nearly 20 years of effort.

This article was originally published by Electrek.co. Read the original article here.