Electric car startup Coda is the latest in a series of greenm dreams to go down the drain – and it won’t be the last. Coda filed for Chapter 11 bankruptcy protection today, writes Reuters, “after selling just 100 of its all-electric sedans, another example of battery-powered vehicles’ failure to break into the mass market.”
Coda launched its electric sedan in California a year ago. Based on a slider made in China, the car delivered a range of 125 miles on a single charge. For $37,250 MSRP, the few buyers received a no-frills car.
Coda had no shortage of money when it started. Coda raised $300 million in equity from backers “including Aeris Capital, Limited Brands Chief Executive Les Wexner, and former U.S. Treasury Secretary Henry Paulson,” Reuters says. Nevertheless, $300 million are not enough to develop a car, let alone a car company.
Coda applied for, but withdrew a request for $334 million in federal loans.
Electric cars are a hard sell, but Coda made its life even tougher: “Coda has two problems,” a leading executive of a Japanese OEM that is heavily invested in electric cars told me last year, “they are trying to sell EVs, and cars made in China.”