In efforts to continue the initiative for green living, many young companies have attempted to carve out a place in the electric car market. As one of three recent startup companies for green car manufacturing, Coda Holdings profits failed to live up to the vision.
Only three short years ago, Coda was one of several emerging companies aiming to build emission-free electric cars. Introducing its five-passenger electric car in California last year, the vehicle boasted a 125 driving range per single charge. Listed for a reasonable $37,250 the company sold a mere 100 vehicles since its release. Criticized for its no-frill styling coupled with a brief recall for faulty airbags, Coda’s cars have met opposition even from consumers in their niche market.
Unfortunately for Coda, investors have withdrawn their interest in additional financing of operations. Having once raised $300 million in equity from investment firms, Coda now faces difficulty in securing private funding. Despite having requested federal aid in the amount of $334 million, Coda has decided to pursue restructuring efforts under bankruptcy protection instead.