Proterra, a company that develops battery systems for buses and other heavy duty EVs, filed for bankruptcy earlier this week, making it the latest in a string of failures in the EV sector…
It launched in 2004 as an electric transit bus company, a sector that seemed open for the taking and well positioned for growth…Things were going well enough that it went public in 2021 via a merger with special purpose acquisition company [SPAC] in a deal was valued at $1.6 billion…
Contracts are typically signed 12 to 18 months prior to bus manufacturing, Proterra said in a day one declaration filing with the U.S. Bankruptcy Code in the District of Delaware. “Contracts signed in 2021 proved to be priced below where the manufacturing costs were ultimately realized in 2022,” the company noted…
The company said it will continue operations and will make a request to the bankruptcy court to use existing capital to pay employee salaries and compensating vendors and suppliers. In the meantime, Proterra has canceled its earnings call scheduled for August.
DB2