Electric truck sensation, Volta Trucks, finds itself on rocky terrain. The company, a household name for electric vehicle enthusiasts, recently declared bankruptcy and is now on a frenzied search for a potential buyer to lift it from the crisis.
Hailing from Sweden but making a mark in the UK, Volta’s journey hit a speed bump due to the unexpected bankruptcy of its supplier, Proterra, this past August.
This, coupled with uncertainties regarding its battery supplier, led to challenges in raising enough capital. An inside source revealed, “We were 30 days out from production,” when the bankruptcy struck.
To further underline Volta’s previous success, it’s worth noting the company had successfully attracted funds amounting to about 460 million euros ($488 million) from investors.
What makes Volta’s case even more compelling? Their order book. They’ve secured orders for over 5,000 vehicles, and these eager customers are still keen to get their hands on them.
According to Reuters, initial interest in purchasing the company has already been shown by 10 to 20 strategic or financial investors.
Time is ticking for Volta’s management. While in administration, there’s a narrow window available to secure a fitting rescue bid. Otherwise, administrators might take the route of liquidating assets to offset creditors’ losses.
“We will continue to consider the options for the company as we search for a potential buyer to secure the future of the business,” mentioned representatives of executives at Alvarez & Marsal Europe (A&M), the appointed bankruptcy administrators for Volta Trucks’ UK operations.
It’s evident that the electric vehicle industry isn’t all smooth sailing. Just a few years back, investors poured billions into EV startups. Yet, the changing tides of economic factors like rising inflation have hindered access to crucial funding.
As Volta hustles to find a way out of its predicament, the entire electric vehicle community watches closely, hopeful for a turnabout.