Proterra Inc., a manufacturer and supplier of heavy-duty EV components like chargers and batteries, has officially filed for Chapter 11 in response to supply chain constraints, slowing demand, and an unforgiving funding climate. The filing will provide Proterra protection from creditors as it tries to find repayment solutions.
In total, the company listed its assets and liabilities in the range of $500 million to $1 billion, and as of the last close, Proterra’s market share was valued at $362 million. However, in response to the bankruptcy announcement, Proterra’s shares plummeted nearly 65% in premarket trading.
“We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale all of our opportunities simultaneously,” said Gareth Joyce, Proterra CEO.
Despite its bankruptcy announcement, Proterra plans to operate the business as usual and file customary motions with the bankruptcy court to use existing capital to fund its operations. The news comes shortly after the company announced plans to cut jobs and combine electric bus and battery productions in South Carolina to trim costs.