Biden’s favored EV company files for bankruptcy.
Proterra Files for Chapter 11 Bankruptcy, Dealing Blow to Electric Bus Industry
Proterra, a leading provider of components for electric buses, made headlines on Monday as it submitted a Chapter 11 bankruptcy safeguard. This unfortunate development marks another collapse in an industry that is currently facing significant challenges.
The California-based company revealed that its assets and debts fall within the range of $500 million to $1 billion. At the close of the previous session, Proterra’s market valuation stood at $362 million, according to Reuters.
In a news release, CEO Gareth Joyce acknowledged the various market and macroeconomic headwinds that have impacted Proterra’s ability to scale its opportunities efficiently. However, Joyce emphasized that Proterra remains at the forefront of innovations driving commercial vehicle electrification.
“We know we’re building industry-leading products that our customers want and need,” Joyce stated. “The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole.”
Recognizing the potential in their product offerings, Proterra is taking action to maximize their independent potential by separating each product line through the Chapter 11 reorganization process.
Proterra, the electric school bus company that Biden’s Energy Secretary Jennifer Granholm held over $5 million of stock in while fighting to get them massive subsidies from the federal government, is now bankrupt. https://t.co/hCfZZMyIug
— Greg Price (@greg_price11) August 7, 2023
Blow to Biden Administration’s Green Initiatives
The news of Proterra’s bankruptcy comes as a major blow to the Biden administration, which had allocated over $18 billion from last year’s $1.9 trillion infrastructure plan toward zero-emission transit and school bus programs.
Since taking office, President Biden has been a vocal supporter of Proterra, promoting the company on numerous occasions and even receiving a virtual tour of their manufacturing facility. However, this close relationship raised ethics concerns when it was revealed that Biden’s Energy Secretary, Jennifer Granholm, held a significant stake in the company.
Despite the setback, the White House remains committed to the goal of decarbonizing the transportation sector. Gareth Joyce, Proterra’s CEO, continues to lead the company’s efforts in growing its EV battery manufacturing footprint in the United States and accelerating the transition to zero-emission solutions for transit and other commercial vehicles.
As of Tuesday afternoon, shares in Proterra had plummeted by nearly 90 percent, reflecting the significant impact of the bankruptcy announcement.
The post EV Company That Biden Admin Loves Declares Bankruptcy appeared first on The Western Journal.
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