American EV Charging Station Maker Charge Enterprises Files for Bankruptcy
Electric vehicle charging station manufacturer Charge Enterprises on March 7 filed for a prepackaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware as reported by Bloomberg.
We previously reported on another bankruptcy in the EV space as well as Mercedes-Benz pulling the plug on its EV ambitions.
Charge Enterprises was a public company that was headed by former GM and Ford executives and had been making charging stations for Stellantis, Ford, Volvo, and General Motors.
The company follows a handful of other EV companies filing Chapter 11s, including EV maker Lordstown Motors Corp. and EV parts maker Proterra and Electric Last Miles Solutions Inc.
Charge Enterprises plans to handover 100% ownership of the company to prepetition lender Arena Investors, after the debtor in November 2023 was unable to redeem about $9.9 million of its assets from investment adviser Korr Acquisitions Group because of an alleged breach of fiduciary duties.
While this only serves to prop up Tesla’s EV charging network, there’s also mounting evidence that the sales of EVs have slowed.
In a report by CNBC, the sales of EVs are falling and experts point to poor resale value, high cost of ownership, and poor infrastructure as the main reasons people are not adopting EVs fully.
