Another 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.
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.