Electric vehicle company bankrupt

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【Summary】Biden-backed EV company Proterra files for bankruptcy after facing market challenges. The company, valued at $1.6 billion, sold over 1,300 electric buses but closed with a market value of $362 million. Energy Secretary Jennifer Granholm, who heavily invested in Proterra, made a profit of $1.6 million by selling shares. Biden appointed Proterra's CEO to the President's Export Council. Philadelphia's fleet of Proterra buses had to be taken out of service due to defects in the plastic chassis.

FutureCar Staff Aug 15, 2023 7:32 AM PT

President Biden frequently praised an electric vehicle company that his energy secretary had invested heavily in, but the company has now filed for bankruptcy. Proterra, a Bay Area-based electric bus and battery maker, filed for Chapter 11 due to market and macroeconomic challenges. Despite selling over 1,300 electric buses in the US and Canada, the company's market value dropped significantly from $1.6 billion to $362 million.

In 2021, President Biden allocated over $10 billion from his infrastructure plan towards zero-emission transit and school bus programs. He has been a vocal supporter of Proterra, even virtually touring one of their facilities. During the tour, he acknowledged that the US was behind China in terms of electric vehicles but expressed optimism about catching up.

Energy Secretary Jennifer Granholm, who had significant investments in Proterra, sold hundreds of thousands of shares in May 2021, earning a profit of $1.6 million. This raised concerns about potential conflicts of interest and led to calls for her divestment. Granholm had served on Proterra's board until shortly before her Senate confirmation hearing.

In addition to his support for Proterra, President Biden appointed Proterra's CEO, Gareth Joyce, to the President's Export Council in February 2023. The White House praised Joyce's leadership in expanding Proterra's EV battery manufacturing in the US and promoting zero-emission solutions for transit and commercial vehicles.

However, Proterra has faced some challenges with its products. Philadelphia purchased a fleet of Proterra buses in 2019, but they had to be taken out of service the following year due to defects. Sources familiar with the situation attributed the issues to a defect in the buses' plastic chassis, which caused cracking.