Proterra (NASDAQ:PTRA) stock is plummeting on Tuesday after the electric vehicle (EV) company filed for Chapter 11 bankruptcy protection.
According to a press release from Proterra, this voluntary bankruptcy filing has it seeking to strengthen its financial position. It plans to do this via a recapitalization or going-concern sale.
Gareth Joyce, CEO of Proterra, said the following about the EV company’s decision to file for bankruptcy:
“The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation. This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential.”
What the Bankruptcy Means for PTRA Stock
Proterra notes that as part of the bankruptcy, it will file motions with the court to continue normal operations. One thing that will change is that the company won’t be holding its planned earnings conference call tomorrow.
With this bankruptcy filing, shares of PTRA stock are seeing a strong amount of trading early this morning. As of this writing, more than 1.3 million shares have changed hands. That’s quickly closing in on its daily average trading volume of around 2.2 million shares as investors sell the stock.
PTRA stock is down 65.2% as of Tuesday morning and was already down 61.7% year-to-date (YTD) as of Monday’s close.
Investors looking for more of the most recent stock market news on Tuesday will want to stick around!
InvestorPlace is home to all of the hottest stock market news that traders need to know about today! A few examples of that include why shares of Biophytis (NASDAQ BPTS) and Infinity Pharmaceuticals (NASDAQ:INFI) stock are up, as well as the biggest pre-market stock movers this morning. You can find out more on these matters at the links below!
More Tuesday Stock Market News
- Why Is Biophytis (BPTS) Stock Up 18% Today?
- Why Is Infinity Pharmaceuticals (INFI) Stock Up 84% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
