EV Startup Coda Snags $58m Investment

Edward Niedermeyer
by Edward Niedermeyer

On the strength of Coda Automotive’s plan to launch a $45,000 EV conversion of a Chinese Hafei sedan, our coverage of the EV startup (formed from the ashes of Miles Electric Vehicles) has pretty much been limited to the conclusion that it “make the Volt look good.” And as the competition has moved forward, the venture isn’t looking any better by comparison. With news that Nissan will be able to manufacture its Leaf batteries for the low, low price of under $400 per kWh ( if all goes to plan, anyway) rocking the EV community, Coda’s proposition of asking $45,000 for a 33.8 kWh lithium-ion battery with a Chinese compact sedan attached to it has not aged well (conservatively assuming the Hafei costs $15k, that still breaks out to nearly $900 per battery kWh, as crude as the comparison may be). But don’t let a little common sense worry you about Coda’s future: according to a company press release [via PRNewswire] the firm just scored a cool $58m in an oversubscribed fundraising round that leaves it with over $125 in total investments.

This “Round C” of investment-gathering was initially limited to $50m, but was apparently expanded to $58 to accommodate unforeseen investor interest. According to the firm, new investors include

EDB Investments (EDBI), a leading investment firm headquartered in Singapore; Countyline LLC, an investment entity owned by Tony Pritzker and J.B. Pritzker; and Les Wexner, Chairman and CEO of Limited Brands. Existing investors Thomas F. Steyer, Mac Heller, Miles Rubin, John Bryson and Angeleno Group also participated.

And a successful investment round wasn’t Coda’s only cause for putting together a press release:

CODA also announced that it will establish an office in Singapore to serve as the design and engineering center for the development and homologation of CODA electric vehicles for right-hand drive markets in Europe and Asia. CODA’s Singapore office will participate in the company’s research and development efforts into vehicle-to-grid technology, a system in which electric vehicles communicate with the power grid to provide electricity during peak demand periods.

“The continued interest in CODA among the investment community is a testament to the strength of our business model and go-to-market strategy,” said Kevin Czinger, President and CEO, CODA. “We welcome EDBI to our team and look forward to working closely together to bring all-electric cars to Singapore and other international markets. While CODA remains focused on the U.S. introduction of our all-electric car this year, international markets, particularly in Asia and Europe, are important to the long term strategic positioning of our company.”

According to the company’s release, that “focus” on the US market translates into the goal of selling 14,000 unit between Q4 of this year and the end of 2011. If that goal is met, the resulting $630m of gross revenue might make these investors look good. But then other $45k-ish-and-up niche vehicles often have a hard time making those numbers: Porsche’s Boxster, for example, has never cracked the 14k annual units barrier, even in years that include Cayman sales in that number. GM is tentatively projecting first-year Volt sales “in the thousands” with volume not reaching the tens of thousands until year two. And, as we’ve already pointed out, The Volt

has a few things going for it, like a gas range-extender, a real (if devastated) dealer network, a metric ton of government money and over a year of relentless hype. Coda Automotive has none of those things

Edward Niedermeyer
Edward Niedermeyer

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  • Analyst Analyst on May 20, 2010

    "conservatively assuming the Hafei costs $15k," That sedan is being sold at about $10k in China. (It's called the Saibao III). I just can't see this car being sold at this price. Not going to happen, especially after they announced the Leaf.

  • The Oracle Well, we’re 3-4 years in with the Telluride and right around the time the long term durability issues start to really take hold. This is sad.
  • CoastieLenn No idea why, but nothing about a 4Runner excites me post-2004. To me, they're peak "try-hard", even above the Wrangler and Gladiator.
  • AZFelix A well earned anniversary.Can they also attend to the Mach-E?
  • Jalop1991 The intermediate shaft and right front driveshaft may not be fully engaged due to suspected improper assembly by the supplier. Over time, partial engagement can cause damage to the intermediate shaft splines. Damaged shaft splines may result in unintended vehicle movement while in Park if the parking brake is not engagedGee, my Chrysler van automatically engages the parking brake when we put it in Park. Do you mean to tell me that the idjits at Kia, and the idjit buyers, couldn't figure out wanting this in THEIR MOST EXPENSIVE VEHICLE????
  • Dukeisduke I've been waiting to see if they were going to do something special for the 60th Anniversary. I was four years old when the Mustang was introduced. I can remember that one of our neighbors bought a '65 coupe (they were all titled as '65 models, even the '64-1/2 cars), and it's the first one I can remember seeing. In the '90s I knew an older gentleman that owned a '64-1/2 model coupe with the 260 V8.
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