Biden’s favorite electric vehicle company files for BANKRUPTCY: The White House’s green agenda has taken a major hit as Kamala-promoted company plunges into financial crisis
- In January 2021, Proterra was valued at $1.6 billion
- Biden hosted the company at “virtual” events
An electric vehicle manufacturer repeatedly defended by President Joe Biden has filed for Chapter 11 bankruptcy protection.
Biden announced EV parts supplier Proterra just months into this term, taking a “virtual” portion of its South Carolina plant amid Covid concerns. He gave another “virtual tour” early this year, praising the company’s efforts while touting its environmental and manufacturing agenda.
“I’m coming down to see you in person. So I look forward to seeing you all,” Biden told executives at the 2021 event.
“I want you all to know that I used to be a bus driver,” he said at the event. “You think I’m joking, I’m not. I worked my way through law school on a school bus.”
President Joe Biden repeatedly defended the Proterra supplier of electric car parts. It announced this week that it would file for Chapter 11 bankruptcy protection
The praise was part of an effort to boost corporate investment in so-called “green technologies.” Biden would seek to support further initiatives with billions of investments included in the $1.9 billion infrastructure bill.
Gareth Joyce, CEO of Proterra, said in a statement: “The foundation we have laid has paved the way for the decarbonisation of the commercial vehicle industry as a whole, and we recognize the great potential across all our product offerings to enable this important transformation. to make.’
“This is why we are taking action to segregate each product line through the Chapter 11 reorganization process to maximize their independent potential,” he said, Fox news reported.
“While our best-in-class EV and battery technologies have set an industry standard, we have faced several market and macroeconomic headwinds, which have impacted our ability to efficiently scale all of our opportunities simultaneously,” he added. up to it. “As commercial vehicles accelerate towards electrification, we look forward to sharpening our focus as a leading provider of EV battery technology to the benefit of our many stakeholders”
Biden’s infrastructure bill contains large grants intended to boost the EV industry
The filing comes amid industry disruptions
The electric vehicle parts supplier filed for Chapter 11 bankruptcy protection on Monday, making it the latest company to file for bankruptcy in an industry grappling with supply chain constraints, slowing demand and a funding shortfall.
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 after Monday’s call, listed its assets and liabilities in the $500 million to $1 billion range. The company had a market value of $362 million at last close.
In January 2021, Proterra was valued at $1.6 billion, including debt, in a merger agreement with a blank check company.
“We have faced several market and macroeconomic headwinds that have impacted our ability to scale efficiently,” CEO Gareth Joyce said in a statement.
Proterra, which makes both electric buses and battery packs, said it plans to continue operating as normal. It plans to file customary motions in bankruptcy court to use existing capital to fund operations.
The company announced plans for more job cuts earlier this year and said it will combine production of electric buses and batteries in South Carolina to cut costs.