- Hank Paulson Burned As Another Electric Car Maker Goes Up In Flames (ZeroHedge, Mai 1, 2013):
It would appear that (apart from Tesla, for now) that any thing related to electric cars is going up in flames. From Fisker’s fubar (and blowing all that hard-earned government funding) and Chevy’s Volt dysphoria to A-123 Systems (the Lithium-Ion battery-maker) and now Coda – which Yahoo Finance notes was among an emerging crop of California startups seeking to build emission-free electric cars three years ago. After selling just 100 of its $37,250 five-passenger vehicles, Coda filed Chapter 11 today taking a few well-known investors with it. On the bright side, the government was not involved (from what we can tell), but on the even brighter side, none other than former US Treasury Secretary Hank Paulson was among those burned by the company going up in flames (as was Harbinger’s Phil Falcone).Despite the $300 million the company managed to raise, that quickly went and unable to raise an additional $150 million in new funding (we suspect blaming ‘market conditions’ for its mere $22million raise), Coda had no choice (and Fortress was more than happy to scoop it up and provide the DIP – the cars will make for fancy paperweights in a collateral liquidation). ‘Green’ is the new ‘red’ as it seems when it comes to electric cars, regardless of funding source – private or public – it goes up in flames.
Green car startup Coda Holdings Inc filed for Chapter 11 bankruptcy protection on Wednesday after selling just 100 of its all-electric sedans, another example of battery-powered vehicles’ failure to break into the mass market.
… exit the auto sector and refocus on energy storage, a far less capital-intensive business. Continue reading »