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Electric Car Maker Coda Files for Bankruptcy

It will sell its assets to an investment group


Bankruptcy next exit sign 630Another electric car company has failed.

On Wednesday, Coda Holdings sought Chapter 11 bankruptcy protection in Delaware. The company, which says it owes creditors $100 million, but has assets worth only $50 million, is looking to sell its remaining assets to an investment group, Bloomberg noted.

Fisker Lays Off Most Workers, Gets Sued For Lack of Notice
Fisker Lays Off Most Workers, Gets Sued For Lack of Notice

With the backing of billionaire Philip Falcone and former U.S. Treasury Secretary Henry Paulson, Coda raised $320 million to finance the development of its electric car. The company touted the enhanced speed and range of its battery-powered vehicles.

Last year, a Coda executive said the company hoped to capture 15% of non-luxury electric vehicles sales in the U.S. Its compact car was priced at $37,250, but consumers could lower that price with a $7,500 federal tax credit. The car competed with electric cars from Nissan (PINK:NSANY), General Motors (NYSE:GM) and Ford (NYSE:F).

However, sales of electric cars fell last year as consumers balked at high prices and reduced trip ranges compared to gasoline-only vehicles. Last month, Fisker Automotive defaulted on a $10 million payment on its federal loans. Fisker recently fired 75% of its workforce and is expected to seek bankruptcy protection.

In contrast, luxury electric car maker Tesla Motors (NASDAQ:TSLA) recently announced that it expected to produce its first-ever quarterly profit on higher-than-expected vehicle sales.

Article printed from InvestorPlace Media,

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