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Electric car manufacturer Coda files for Chapter 11 bankruptcy

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Coda Automotive (STOCK)
Coda Automotive (STOCK)

Fisker isn't the only electric car manufacturer that's failed to live up to expectations: today the parent company of Coda Automotive announced that it is filing for Chapter 11 bankruptcy protection, and will be exiting the car business altogether. Bloomberg reports that Coda Holdings hopes to sell its assets to an affiliate of Fortress Investment Group for around $25 million. A statement from the company explains that "This process is intended to enable the Company to complete a sale, confirm a Plan and emerge from bankruptcy in a stronger position to execute its new business plan." The company expects said sale to be completed within 45 days.

Coda Automotive — which sold less than 100 units of its namesake electric vehicle since it came to market last year — has struggled, blaming its troubles on production delays and the slow growth of the electric vehicle market itself. The company was partially backed by Philip Falcone, a billionaire who also served as the CEO of another company that didn't perform as well as hoped: LightSquared. Two years ago, the battery technology used in Coda Automotive's vehicles was spun off into a different subsidiary, Coda Energy. That company focuses on utilizing the technology for standalone, stationary uses, and that business will be the main focus of Coda's attention moving forward.

Bloomberg also points out that Coda is at least the third company with ties to the electric vehicle market to file for bankruptcy within the last year and a half; the other two were companies devoted to making batteries for electric vehicles. It's just another sign that while Tesla may be optimistic about its own future, electric vehicles as a whole are still not taking off as quickly as once hoped.