On 7 August 2023, California-based Proterra surprised the automotive industry by filing for bankruptcy. Launched in 2004, the heavy-duty battery system developer and electric bus (e-bus) manufacturer had previously raised more than US$1.2bn in funding rounds and was backed by companies such as Daimler and BMW i Ventures. The deal that saw the company become publicly listed on the Nasdaq in 2021 was valued at US$1.6bn.
In its Chapter 11 filing, Proterra claimed that complex fleet customisation made scaling operations difficult without “extensive” working capital. The company also stated that rising inflation in the US made contracts signed 12-18 months prior unworkable, as the agreed prices shrank margins considerably.
At the time of writing, Proterra remains operational. But what impact could the financial headwinds of a long-established player have on the wider US e-bus segment?
