Three major electric vehicle companies have recently filed for bankruptcy despite the rapid growth of the electric vehicle industry. This tragic incident has led to finger-pointing, with customers being blamed for the millions of dollars of debt.
Electric Vehicle Companies faces bankruptcy (Photo: CNBC)
Three Major Electric Vehicle Companies Declared Bankruptcy
According to The Sun, three major electric vehicle companies, IndieEV, Lordstown Motors, and WM, have recently declared bankruptcy.
Each of the three electric vehicle companies has reportedly lagged in sales and production as other electric vehicle companies grew their factory capacity and became increasingly popular, such as Tesla, Fisker, and Rivian.
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Electric Vehicle Companies Blame Customers for Bankruptcy: Is It Really Their Fault?
These three electric vehicle companies blamed their bankruptcy on customers. Are customers truly responsible for their bankruptcy? According to Motor Mouth, the three electric vehicle companies had very different routes to their roadmap to their bankruptcy.
Lordstown Motors, one of the electric vehicle companies specializing in trucks and receiving praises from former President Donald Trump, declared bankruptcy in June, inflated its sales to make money before selling off stocks. The second of the three electric vehicle companies is the IndiEV. The company recently bought contracts to build its cars in the same Lordstown factory, but it racked up $26.43 million in debt and only $2.83 million in assets. Finally, the third electric vehicle company that filed bankruptcy is WM Motors. The China-based company was working on plans to sell Kaixin Auto Holdings but couldn’t reach a deal.
Although customers may have contributed to the companies’ financial struggles, there were other significant factors that played a role that resulted in bankruptcy.
