Proterra, a provider of components for electric buses, submitted a Chapter 11 bankruptcy safeguard on Monday, becoming the latest firm to collapse in an industry facing serious challenges.
The California-based company disclosed its assets and debts within the range of $500 million to $1 billion, while its market valuation stood at $362 million at the close of the previous session, according to Reuters.
CEO Gareth Joyce said in a news release that the company had “faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously.”
“Proterra is at the forefront of the innovations that are driving commercial vehicle electrification,” Joyce said. “We know we’re building industry-leading products that our customers want and need.”
“The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation,” he continued.
“This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
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
The news will come as a major blow to the Biden administration, which set aside over $18 billion of last year’s $1.9 trillion infrastructure plan toward zero-emission transit and school bus programs.
Since taking office in January 2021, Biden has promoted the company on numerous occasions and was even provided with a virtual tour of their manufacturing facility.
“Since I took office, companies have announced investments totaling more than $100 billion in electric vehicle industry for the future, from the iconic companies like Ford, GM — new electric vehicle production; Tesla — our nation’s largest electric vehicle manufacturer; to innovate and — and inspire younger companies — like Rivian, building electric trucks; Proterra, building electric buses,” he said during a media briefing in March 2022.
The relationship even prompted ethics concerns after The Washington Free Beacon reported that Biden’s Energy Secretary Jennifer Granholm held a significant stake in the company. She eventually sold her stake of the company in May 2021 for $1.6 million.
Back in February, Biden even appointed Joyce to the President’s Export Council in February 2023.
“Gareth Joyce serves as Chief Executive Officer and Board Member at Proterra. Joyce brings to Proterra a long and distinguished career that spans the automotive, aviation, and consulting industries with a consistent focus on environmental sustainability and decarbonizing the transportation sector,” the White House said in a statement at the time.
“Through his leadership, Joyce is growing Proterra’s EV battery manufacturing footprint in the United States and accelerating the transition of transit and other commercial vehicles to zero emission solutions,” it continued.
As of Tuesday afternoon, shares in the company had plummeted by nearly 90 percent.
This article appeared originally on The Western Journal.