Shai Agassi thought Better Place was the secret sauce to spice up electric vehicle sales: Swappable batteries as a service, the answer to high battery prices (hidden in a pay-as-you-go model,) range anxiety and long charge times. Instead, Better Place emerges as a novel way to destroy money. Better Place posted third-quarter loss of $71.2 million, greater than $65.8 million a year earlier. The total loss for the January to September period stands at $203 million, Reuters says. Better Place accumulated losses of $561.5 million.
Out of the 100,000 electric Renault Fluence Better Place wanted to put on the streets of Israel and Denmark, only 500 have been delivered so far. No wonder Better Place replaced its chief executive and founder Shai Agassi in October.
Israeli media have reported that fleet owners are backing out of a deal with Better Place.
Better Place investor Israel Corp and expects Better Place “to have losses and negative cash flow in future periods.” Better Place needs money. It wants to raise $100 million in an issue of preferred stock, two-thirds are supposed to come from Israel Corp, which hasn’t lost the faith.