The management of the bankrupt electric truck startup, Volta Trucks, is actively pursuing a buyer to rescue the company from administration and facilitate the final stages of ramping up production to meet mass production targets, Reuters reported on Friday, citing sources familiar with the situation.
The news comes a little over a year after the Sweden-based startup raised $260 million(230 million euros) in Series C funding to fund the launch of the series production of its Volta Zero electric truck. Volta Trucks had raised a total of $390.9 million in total funding, according to data from CrunchBase.
As we reported back in February 2022, the round was led by hedge fund Luxor Capital. Volta Trucks is the developer of the world’s first purpose-built full-electric 16-ton vehicle designed for sustainable cities and inner-city logistics.
Volta Trucks, with its headquarters in Sweden and operations in the United Kingdom, filed for bankruptcy earlier this week. This decision was influenced by the earlier bankruptcy of its supplier, Proterra, in August, along with the uncertainty surrounding its battery supplier. These factors posed significant challenges in raising the necessary capital for the company.
Prior to this setback, the startup had selected a factory in Austria for the manufacturing of its electric trucks and had been diligently working toward achieving mass production capabilities.
“We were 30 days out from production,” when the bankruptcy came, the source told Reuters, emphasizing the untimely nature of the bankruptcy. They also revealed that Volta Trucks had successfully secured a substantial investment totaling approximately 460 million euros (equivalent to $488 million) from various investors. The source has chosen to remain anonymous.
Despite the challenging situation, customers who had placed orders for over 5,000 Volta Trucks are still eager to receive their vehicles. In the wake of the bankruptcy, the company’s management has already fielded initial inquiries from a notable range of 10 to 20 potential strategic or financial investors interested in acquiring the company, as disclosed by the source.
Founded in 2019, Volta Trucks specializes in the production of fully electric trucks for sustainable cities. With offices in Sweden and France, Volta Trucks has forged strategic partnerships with several global leaders in the supply chain to facilitate the development and manufacture of their flagship product, the Volta Zero. Their core mission is to revolutionize last-mile logistics by introducing safer, more eco-friendly fully electric trucks, aimed at safeguarding vulnerable road users and enhancing urban environments.
The Volta Zero set itself apart from other EV trucks by being purpose-built for electric propulsion right from the start, resulting in significant advancements in vehicle, driver, and pedestrian safety. With the internal combustion engine removed, Volta Zero’s operator occupies a central driving position with a substantially lower seat height compared to traditional trucks. This, coupled with a cab design that resembles a glass house, provides the driver with an expansive 220-degree field of vision, effectively reducing hazardous blind spots.