A chapter 11 bankruptcy petition has been made by Proterra, an electric vehicle manufacturer that the Biden administration has praised.
After the New York Stock Exchange closed on Monday night, the electric vehicle and storage company, which President Joe Biden has mentioned numerous times, filed for bankruptcy, according to Reuters.
Rapid Stock Decline After Silent News
Between $500 million and $1 billion were estimated to be its assets and liabilities, down from $1.6 billion in January 2021.
Within an hour after the silent announcement, the value of the company’s stock dropped to almost a third of what it had been, and by Tuesday’s closing, it had decreased to around one-seventh of what it had been on Monday.
The Biden administration has featured the electric vehicle company, which makes electric buses for transit agencies, a few times, and the CEO of the company, Gareth Joyce, was also named by the president earlier this year to a prominent White House advisory board.
In 2021, Biden also took part in a virtual tour of a Proterra production facility in South Carolina, where he disclosed he once worked as a bus driver.
We see the enormous potential in all of our product offerings to facilitate this significant shift. The foundation we have developed has prepared the commercial vehicle industry as a whole for decarbonization.
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Collaboration and Deforestation Fight
For this reason, we are moving through with the Chapter 11 reorganization procedure to separate each product line in order to fully realize their potential as independent entities.
He continued, While our best-in-class EV and battery technologies have become the industry standard, we have encountered a number of macroeconomic and market headwinds that have hindered our ability to effectively scale all of our prospects at once.
For the benefit of our numerous stakeholders, we anticipate narrowing our focus as a top supplier of EV battery technology as the electrification of commercial vehicles picks up speed.
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