Biden praised Proterra, but it filed for bankruptcy.

Biden’s Praise for Green Energy Company Backfires as it ⁤Declares Bankruptcy

President Joe Biden enthusiastically endorsed the company. Its top executive even secured a ⁢position on a White ⁣House board. Meanwhile, Energy Secretary ⁤Jennifer Granholm held a significant number of shares in it.

However, all of this support couldn’t prevent Proterra, the‍ electric vehicle manufacturer known for ​its⁤ unreliable buses, from filing for ​bankruptcy. Proterra cited “various market and macroeconomic ‌headwinds” as the ⁤reason for its Chapter 11 filing, which ​followed ⁢significant job cuts and debt restructuring earlier this year.

This bankruptcy ⁤declaration is a major blow⁣ to Biden’s favored green ⁤energy ‍company. In April 2021, ⁤Biden participated in a virtual tour of a‌ Proterra facility to promote his $1.9 trillion infrastructure plan, which included substantial⁢ funding to ‍boost the electric bus industry. During ⁢the event, Biden expressed his confidence in Proterra, stating⁣ that they⁣ were “getting us in the game” and predicting their success in ​shaping the future of electric vehicles. He continued to‍ praise ‍Proterra in a speech in March 2022 and appointed Proterra‌ CEO‍ Gareth Joyce ​to serve on the President’s Export Council in February 2023. Granholm’s ownership of 240,000 shares in the company ‌at the start of⁢ her tenure ⁣raised ethical concerns.

While Proterra’s ‍shares plummeted by over 60 percent in after-hours trading on Monday, Granholm managed to sell her shares for $1.6‌ million in May 2021, shortly after Biden publicly endorsed the company. Based on Proterra’s⁤ current share price, her shares would now⁢ be valued at ​just $340,000.

Biden’s unwavering support for Proterra, coupled with Granholm’s ⁤financial​ stake​ in the ‍company, has drawn ‍comparisons to the Solyndra scandal. ⁣Solyndra, a solar panel⁢ manufacturer, went bankrupt ⁣after receiving a⁢ $535 million ​loan guarantee as part of the‌ 2009 Obama-Biden stimulus package. ‌President Obama had praised Solyndra⁣ during a ‍tour of its facility in 2010, only for the company to shut down in 2011.

“President Biden’s decision to heavily promote ⁤a⁣ business where his energy secretary holds a multimillion-dollar stake has all the​ potential ‌to⁣ be even ‌worse than ⁢Solyndra,”⁢ said Senator Ted Cruz (R., ⁢Texas). ​”President Biden and Secretary Granholm⁢ should immediately​ remove themselves from their glaring conflict ⁤of interest.”

Proterra stood to benefit significantly from Biden’s ⁣infrastructure and green energy initiatives,‌ which⁢ included billions of dollars in spending on electric buses alone.‍ The Inflation​ Reduction Act, Biden’s flagship climate bill, also allocated funds ⁤to help ‌cities transition‌ from diesel​ buses to electric ⁣buses, ⁣providing a ⁢major incentive for companies like Proterra.

JoAnn Covington, Proterra’s​ chief legal officer, acknowledged‍ last year that ⁤tax credits and federal grants under Biden’s bills were crucial for ⁣the company. These grants would accelerate the adoption ⁣of⁤ battery-electric​ and zero-emissions vehicles in various commercial sectors.

However, many Proterra customers had negative⁤ experiences ⁣with the​ company’s buses. For example, a ⁣Michigan‌ school district that invested heavily in Proterra buses reported ⁢numerous performance issues and significant‌ downtime. Similar challenges ‍were ⁣faced⁢ by⁤ school districts in other‍ states, making it​ a challenging ‍experience for the school bus market.