Another green car startup, Coda Holdings, failed to break into the mass market as today, May 1st, it filled for Chapter 11 bankruptcy protection.
After Coda Holdings sold only 100 units of its all-electric sedans, the company filed with U.S. Bankruptcy Court in Delaware, which will give the automaker the possibility to exit the auto sector and focus on energy storage, which is a less capital-intensive business. Fortress Investment Group, which lads a group of lenders, said it will try to acquire the company offering $25 million through the bankruptcy process.
Last year Coda introduced its five-passenger electric vehicle in California, a car which delivers a 125-mile range on a single charge and costs $37,250. The model was criticized for its no-frills styling and also for a recall due to faulty airbags.
Three years ago Coda could be placed besides Tesla and Fisker as California startups trying to manufacture emission-free EVs to attract mass-market consumers. But the automaker withdrew in 2012 its request for the $334 million loan, similar with the ones received by Fisker and Tesla. Last year the automaker planned to raise $150 million in private funding but managed to reach only $22 million.
Source: Yahoo Finance