Burlingame electric vehicle company Proterra Inc. (Nasdaq: PTRA) has filed for Chapter 11 bankruptcy.
The company said in a press release that it filed in order to strengthen its financial position through either a recapitalization or to sell off its product lines as individual businesses.
Proterra, which manufactures EV batteries, charging stations and electric buses, listed both its assets and liabilities as over $500 million in its filing in Delaware.
“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," Proterra CEO Gareth Joyce said in a statement. "This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
The company says it plans to continue to operate normally through the bankruptcy process and pay its employees and vendors.
Proterra went public in June 2021 through a merger with an SPAC or blank check company that at the time saw the company valued at $1.6 billion. Since the merger, its share price has fallen from a high of around $15 to around $0.20 on Tuesday.
“While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale all of our opportunities simultaneously," Joyce stated. "As commercial vehicles accelerate towards electrification, we look forward to sharpening our focus as a leading EV battery technology supplier for the benefit of our many stakeholders."
