-- 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.
The auto industry has deployed billions towards EV production, while across the globe, governments have set increasingly strict emissions limits and mandates to accelerate the transition to EVs. But manufacturing commercial EVs profitably remains a huge challenge for legacy automakers and younger companies alike.
Proterra has delivered more than 1,000 electric buses to public transit agencies since 2010. In 2022, it generated $309.4 million in revenue, up 24% from the year prior, according to company filings. The company was awarded a $10 million loan from the Paycheck Protection Program in 2020 that was forgiven in May 2022, according to a filing.
The company’s stock has plummeted 90% since the Aug. 7 announcement, and its shares have fallen from more than $15 to less than $2 since it went public. Despite the setback, Proterra says it’s pushing ahead with business as usual while it works to recapitalize its operations. The company says it has ample opportunity to secure new capital, rework its business strategy and continue to serve its customers.
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