Electric Bus Company With Ties to Energy Sec. Granholm and Touted by Biden Admin Files for Bankruptcy
“We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale”
Proterra, the electric bus company promoted by the Biden administration, is now filing for bankruptcy. Does everyone remember Solyndra, the green energy company that was promoted by Obama and then flopped? Here we go again.
EV firm Proterra files for Chapter 11 bankruptcy protection
Electric-vehicle parts supplier Proterra (PTRA.O) filed for Chapter 11 bankruptcy protection on Monday, making it the latest company to go belly up in an industry grappling with supply chain constraints, slowing demand and a funding drought.
The move comes weeks after Lordstown Motors filed for bankruptcy protection and put itself up for sale after failing to resolve a dispute over a promised investment from Foxconn.
Proterra, whose shares nearly halved in value after the bell, listed its assets and liabilities in the range of $500 million to $1 billion. The company had a market value of $362 million as of last close.
In January 2021, Proterra was valued at $1.6 billion, including debt, in a merger deal with a blank-check firm.
“We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale,” CEO Gareth Joyce said in a statement.
Proterra has ties to Biden Energy Secretary Jennifer Granholm. She was forced to sell her interests in the company when it became public knowledge.
Politico reported in May:
Jennifer Granholm sells holdings in electric bus maker after Republican criticisms
Energy Secretary Jennifer Granholm sold her holdings in electric bus maker Proterra this week, DOE confirmed to POLITICO on Wednesday, following criticism from Republicans that she might be profiting from the administration’s push for electric vehicles.
The details: Granholm cleared all of her Proterra holdings in the sales on Monday, providing her with net capital gains of $1.6 million, DOE said. The move fulfills the last of her obligations under her ethics agreement three months before an August deadline. She had been a board member for the company, but resigned before becoming secretary.
Here’s a clip of Biden speaking with Proterra in 2021:
Biden, Apr. 20, 2021, to Proterra: "When you start making a thousand busses a year, you're going to need more room for customers" pic.twitter.com/DQ5hrYLPHt
— Tom Elliott (@tomselliott) August 8, 2023
During his first two years in office, Biden repeatedly promoted the company Proterra, including virtually touring their factory. He touted the company as the “future.”
Yesterday, Proterra declared bankruptcy. pic.twitter.com/snkcvYf6KM
— GOP (@GOP) August 8, 2023
Granholm needs to answer some more questions about this, too.
— Steve Guest (@SteveGuest) August 7, 2023
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