Electric Bus Maker Proterra’s Bankruptcy Reveals ‘Finite Window’ for EV Startups
The company ran into headwinds that are indicative of the bigger challenges EV startups face as they deal with high upfront investment needs and low sales.
Buses being manufactured at Proterra’s Greenville, South Carolina, facility. The electric bus maker’s bankruptcy shows the challenges electric vehicle startups face, even with widespread support.
Photo courtesy of Proterra
Electric bus maker Proterra Inc. had support from US President Joe Biden, contracts with 135 transit agencies and $309 million in revenue. But despite that, it couldn’t turn a profit after nearly 20 years and filed for bankruptcy last week. In doing so, it revealed that a diversified business in the growing EV market and millions in government loans weren’t enough to keep it afloat.
“Rest assured, there will be more bankruptcies — including some public companies — in the EV industry,” said Pavel Molchanov, an equity research analyst at the wealth management firm Raymond James & Associates. “It's only a matter of time.”