Volta Trucks noted on Tuesday that it had decided to start bankruptcy proceedings in Sweden. The news comes just months after Volta’s battery supplier, Proterra, filed for Chapter 11 bankruptcy in the United States.
Volta Trucks had been working towards the mass production of its electric trucks, but it had not yet started delivering vehicles to its customers. The company had an order book of more than 5,000 vehicles, so it is unclear whether such orders will still be honored.
In a press release, Volta noted that it had made the difficult decision to file for bankruptcy due to numerous challenges in the EV sector. The bankruptcy of Proterra in August alone had made it more difficult to raise additional capital, Volta noted. Volta explained its decision to file for bankruptcy in the following section:
“With deep and sincere regret, the Board has therefore taken the difficult decision to take steps to file for bankruptcy proceedings in Sweden. The main trading entity of the Group, Volta Trucks Limited, will shortly file for administration in England, with insolvency practitioners from Alvarez & Marsal anticipated to take office. Other Group entities will also shortly file for insolvency proceedings in the relevant jurisdictions,” Volta noted.
While its bankruptcy is unfortunate, Volta noted that it has reached a number of milestones over the years. The company created the world’s first purpose-built 16-tonne all-electric truck, and the company’s pilot in five countries in Europe was quite successful.
The bankruptcy of Volta Trucks is a blow to the electric vehicle industry, which is still in its early stages of development. A number of other electric vehicle startups, such as Lordstown Motors and Proterra, have also gone bankrupt. Tesla CEO Elon Musk, for his part, has also warned that EV makers like Lucid Motors are burning cash at a risky rate.
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