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Hank Paulson Burned As Another Electric Car Maker Goes Up In Flames

Tyler Durden's picture




 

It would appear that (apart from Tesla, for now) that any thing related to electric cars is going up in flames. From Fisker's fubar (and blowing all that hard-earned government funding) and Chevy's Volt dysphoria to A-123 Systems (the Lithium-Ion battery-maker) and now Coda - which Yahoo Finance notes was among an emerging crop of California startups seeking to build emission-free electric cars three years ago. After selling just 100 of its $37,250 five-passenger vehicles, Coda filed Chapter 11 today taking a few well-known investors with it. On the bright side, the government was not involved (from what we can tell), but on the even brighter side, none other than former US Treasury Secretary Hank Paulson was among those burned by the company going up in flames (as was Harbinger's Phil Falcone).

Despite the $300 million the company managed to raise, that quickly went and unable to raise an additional $150 million in new funding (we suspect blaming 'market conditions' for its mere $22million raise), Coda had no choice (and Fortress was more than happy to scoop it up and provide the DIP - the cars will make for fancy paperweights in a collateral liquidation). 'Green' is the new 'red' as it seems when it comes to electric cars, regardless of funding source - private or public - it goes up in flames.

Via Reuters,

Green car startup Coda Holdings Inc filed for Chapter 11 bankruptcy protection on Wednesday after selling just 100 of its all-electric sedans, another example of battery-powered vehicles' failure to break into the mass market.

 

... exit the auto sector and refocus on energy storage, a far less capital-intensive business.

 

...

 

A group of lenders led by Fortress Investment Group LLC (FIG.N) plan to extend debtor-in-possession financing and will seek to acquire the company for $25 million through the bankruptcy process, Coda said in a statement.

 

Coda launched its five-passenger electric car in California a year ago, delivering a range of 125 miles on a single charge. The $37,250 vehicle was criticized for its no-frills styling, and its short history also included a recall due to faulty airbags.

 

...

 

Investors poured money into the sector, and Coda raised $300 million in equity from backers including Aeris Capital, Limited Brands Chief Executive Les Wexner, and former U.S. Treasury Secretary Henry Paulson. The company, however, in 2012 withdrew its request for $334 million in federal loans like the ones Fisker and Tesla received.

 

As the allure of EVs faded, Coda struggled to secure new private funding. Last year, Coda sought to raise $150 million but clinched just $22 million, according to a filing with the U.S. Securities and Exchange Commission.

 

...

 

Coda has about 40 active employees and expects to recall 50 furloughed workers.

 

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Wed, 05/01/2013 - 20:29 | 3520541 Dr. Engali
Dr. Engali's picture

DcFusor should be popping up soon bragging about how 98% of Dolt owners would buy one again. Of course they would never admit they made one of the biggest financial blunders in their lives.

Wed, 05/01/2013 - 20:34 | 3520554 Alpo for Granny
Alpo for Granny's picture

Shit. I clicked on this hoping the title meant something else...and had pictures.

Wed, 05/01/2013 - 20:39 | 3520565 ihedgemyhedges
ihedgemyhedges's picture

Paulson was just another tool of Cheney's.  Dick ran the show.  W did his part.  Paulson did his.....but even Dick knew he had to have a squid guy in there for when the SHTF in '08....

Wed, 05/01/2013 - 20:40 | 3520581 francis_sawyer
francis_sawyer's picture

Don't forget that DC Fusor powers his marshmallow roaster up with Leo's Chinese solar panels...

Wed, 05/01/2013 - 20:50 | 3520613 FEDbuster
FEDbuster's picture

No shit, I thought old "Stamerin" Hank burnt up in an electric car.  I guess we will have to wait for him to burn in Hell.

Wed, 05/01/2013 - 21:02 | 3520652 Bennie Noakes
Bennie Noakes's picture

Let's hope that DCFusor didn't accidentally electrocute himself during a controlled fusion experiment.

Thu, 05/02/2013 - 01:17 | 3521384 redpill
redpill's picture

Can we please just put Tesla in a different category than these retards?  I don't particularly like Elon Musk as a person but it's hard to argue that the guy gets shit done.  He's actively delivering cargo to fucking orbit at a fraction of the cost of what any bloated fuckface government has ever done.  His mass-production electric car is on par with gasoline competitors in most every category, and exceeds them in some.  Yes he's taken the free money from the DOE, but who the hell wouldn't in that situation.  That's a far cry from the fuckups that never had a sustainable offering and got an Obama suckoff.

 

Thu, 05/02/2013 - 04:43 | 3521527 Oh regional Indian
Oh regional Indian's picture

You really think he is doing all that Redpill?

Be instructive to see the pattern shift, privatzsing NASA, privatizing space. He is one of th eboys, getting things delivered to him on a platter.

Just the new/green posterboy of choice for the ptb. No genius, that Elon. Just another dual citizen "lucky" or rather "connected/chosen" star is all.

His products SUCK.

ori

Thu, 05/02/2013 - 08:30 | 3521753 YHC-FTSE
YHC-FTSE's picture

Good points from the both of you. I may like the look of the Tesla S2, but I'd never buy one even at half price. To me buying an American car is like putting knives into airbags: suicidal. Besides my reluctance to support the MIC, you have to admit you've forgotten how to make anything decent in the auto sector, and who would buy something from a guy who sounds like a rare rodent?

When the Germans and S.Koreans start making EVs and Hydrogen cars, I'd definitely consider buying, if only to hedge against rising gas prices. 

Thu, 05/02/2013 - 10:31 | 3522281 patb
patb's picture

Honda sells the Plug in Accord,  and Toyota the Plug in Prius.

Ford has a plug in Escape and fusion

 

and BMW is rolling out the plug in i3

 

 

Thu, 05/02/2013 - 10:32 | 3522289 patb
patb's picture

Honda sells the Plug in Accord,  and Toyota the Plug in Prius.

Ford has a plug in Escape and fusion

 

and BMW is rolling out the plug in i3

 

 

Wed, 05/01/2013 - 21:13 | 3520697 smlbizman
smlbizman's picture

tesla has been on the gubmint i.v. drip since day one.....i think we have to stop looking at these as subsidized entities and recognize them for what they are....govt. fronts....conduits for "free" cash flow....

Wed, 05/01/2013 - 21:48 | 3520824 dark pools of soros
dark pools of soros's picture

They said years ago the Model S was going to be around $50k but now I am seeing the decked out 2013 ones at low $90's

They are opening a dealership near me soon. Worth a test drive .. Love the 17" dashscreen

Wed, 05/01/2013 - 22:37 | 3520915 Jorgen
Jorgen's picture

In the other news, Nissan has sold 55,000+ units of Nissan LEAF EV so far since its introduction in 2010. In January 2013, Nissan started producing LEAF's in its Smyrna, TN plant (annual production capacity 150,000 EV's) and in March 2013 also in Sunderland, U.K. Infinity EV is expected to roll out in 2015.

Imho, electric car sales will go through the roof when supercapacitor technology is implemented in the next several years.

Thu, 05/02/2013 - 02:07 | 3521424 Floodmaster
Floodmaster's picture

Hillbillies and Rednecks fear what they don’t understand and hate what they can’t conquer.

Wed, 05/01/2013 - 20:40 | 3520586 Careless Whisper
Careless Whisper's picture

The Careless Whisper News Update & Threadjacking

Official Complaint; Boston Frat Boy Had Jar Of Vaseline In His Dorm Room; 10 Seconds To Get Away From Backpack

http://www.scribd.com/doc/138929622/138928869-Criminal-Complaint-Against...

Wed, 05/01/2013 - 20:42 | 3520590 Dr. Engali
Dr. Engali's picture

I do that all the time except the link always transfers me over to a male member enhancer or some shit like that.

Wed, 05/01/2013 - 21:10 | 3520680 zorba THE GREEK
zorba THE GREEK's picture

I am so disgusted with these bastards selling paper gold & paper silver to drive

the PMs down. When the SHTF, we will have our revenge.

Wed, 05/01/2013 - 20:42 | 3520592 zorba THE GREEK
zorba THE GREEK's picture

i just watched my neighbor cut his grass with an electric lawn-mower, what a joke, it kept stalling out.

Gas is class, the rest can kiss my .....

Wed, 05/01/2013 - 22:41 | 3521014 otto skorzeny
otto skorzeny's picture

I have a Toro and it's great- super quiet, no dicking around with gas and gas cans and oil and winter stabilizers and carbs and all of the other bullshit-just plug it in,charge it and go-easily does my 10000 sq ft lot

Thu, 05/02/2013 - 06:52 | 3521551 Urban Redneck
Urban Redneck's picture

10,000 sq ft? 

Back when I walked 10 miles uphill in bare feet to school each day, we used a predecessor to one of these (they did weigh about 50% more though, but since they were 1/5 the cost and hell of a lot better built- it's probably a wash)...

http://www.homedepot.com/p/Scotts-20-in-Classic-Reel-Mower-2000-20S/100019892

 

 

Wed, 05/01/2013 - 20:43 | 3520603 Croesus
Croesus's picture

Well, if they ever get this car mess sorted out, they should use this guy for their ads:

https://www.youtube.com/watch?v=1gYE5TyijxE

 

Wed, 05/01/2013 - 21:40 | 3520788 Freddie
Freddie's picture

Damn what ever happened to Phil Falcone.  The guy must of got hit with a hockey stick.  He had $26 billion under management in 2008. Lost most of those assets, he aged badly and married this (aka Lisa).

http://articles.businessinsider.com/2010-09-30/sports/30041829_1_hockey-team-three-piece-suit-stylish-shoes

https://www.google.com/search?biw=1360&bih=564&tbm=isch&q=lisa+falcone&revid=2104609404&sa=X&ei=lcKBUZ74PJKo9gTNuYCIAg&ved=0CF4QgxY

Wed, 05/01/2013 - 20:36 | 3520553 fonzannoon
fonzannoon's picture

Speaking of hank "tanks" on the street Paulson, anyone seen Truthinsunshine? He hated Hank.

Wed, 05/01/2013 - 20:40 | 3520582 Dr. Engali
Dr. Engali's picture

That's funny, I was wondering the same thing yesterday. I haven't seen him post in a while.

Wed, 05/01/2013 - 20:42 | 3520598 fonzannoon
fonzannoon's picture

I was also trying to remember who the dudes were in here a few months ago screaming that everyone should be shorting treasuries. I was wondering if they licked their wounds and decided it's better not to dispense advice.

Wed, 05/01/2013 - 20:46 | 3520610 Dr. Engali
Dr. Engali's picture

There have been a lot of people disappear lately. A lot of them made some pretty good posts. I wonder how many said fuck it and slipped back into the matrix.

Wed, 05/01/2013 - 20:51 | 3520621 fonzannoon
fonzannoon's picture

I wonder how many of them thought they "figured it out" and traded their way into oblivion.

I honestly don't think slipping back into the matrix is an option. I do think it is possible to let this overtake you and forget the sun is shining and your dog wants you to throw the ball to him/her and your family care about you.

Wed, 05/01/2013 - 20:55 | 3520625 Dr. Engali
Dr. Engali's picture

+1 very true.

Wed, 05/01/2013 - 21:11 | 3520686 Alpo for Granny
Alpo for Granny's picture

Yeah CPL is MIA too..

Wed, 05/01/2013 - 21:19 | 3520714 fonzannoon
fonzannoon's picture

CPL...wow good call. Scary

Wed, 05/01/2013 - 20:54 | 3520630 Rustysilver
Rustysilver's picture

Can't get rid of me that easy.

Wed, 05/01/2013 - 20:35 | 3520557 booboo
booboo's picture

"Mark it ZERO!!"

Wed, 05/01/2013 - 20:38 | 3520561 francis_sawyer
francis_sawyer's picture

The Eldon Race cars & used as a kid do better than these things...

Wed, 05/01/2013 - 20:35 | 3520562 Careless Whisper
Careless Whisper's picture

Oh, now I get it. Raise 300 million, disperse it, get scooped up by insider for 25 million;, repackage product, raise 500 million of green (ahem) money on round two. Wash. Rinse. Repeat.

Wed, 05/01/2013 - 20:39 | 3520564 Poor Grogman
Poor Grogman's picture

Bullish for horse drawn vehicles...

Wed, 05/01/2013 - 20:39 | 3520574 Downtoolong
Downtoolong's picture

Sometimes the "Long Enough Time Line" isn't a very long time.

Wed, 05/01/2013 - 20:40 | 3520580 The Miser
The Miser's picture

I got a charge out of this article. 

Wed, 05/01/2013 - 20:45 | 3520593 Gamma735
Gamma735's picture

Hell, Hank Paulson could stand to lose millions and still have millions to waste.

Wed, 05/01/2013 - 21:05 | 3520665 wisefool
wisefool's picture

He is worth billions. <sarc> but you know, we should put wealthy people in public office because they can't be bribed. And they would feel no need to opress the masses with tanks, since they already have more money than 10 generations could spend.

Wed, 05/01/2013 - 20:46 | 3520602 Rustysilver
Rustysilver's picture

Would it be easier to buy a 10 speed bicycle for everybody in America.

Wed, 05/01/2013 - 21:03 | 3520656 jeebus
jeebus's picture

Maybe just start with the overweight. We have plenty of those.

Wed, 05/01/2013 - 20:50 | 3520611 Seasmoke
Seasmoke's picture

Hank should stick his pinkie up Lisa Falcones ass

Wed, 05/01/2013 - 20:50 | 3520612 deerhunter
deerhunter's picture

They used to say that buggy whip makers had to adapt to change or go out of business.  I wonder if there are any old buggy whip makers out there?  Anyone???

Wed, 05/01/2013 - 20:55 | 3520637 Rustysilver
Rustysilver's picture

Check the SF bay area.

Wed, 05/01/2013 - 22:02 | 3520872 bluskyes
bluskyes's picture

The buggy whip makers were driven out of business by lack of demand for their product. I've never heard of a big anti-horse / buggy lobby back then. Unlike today where artificial scarcity, and pointless / counter-productive pollution targets, drive costs through the roof and ruin fuel mileage.

By now we should have a $10,000 car, that gets 50 miles to the gallon, and can comfortably sit 4. This car should also last at least 15 years / 300,000 miles.

Thu, 05/02/2013 - 10:54 | 3522405 patb
patb's picture

Buggy whips are not entirely gone. A resurgence of interest in the international sport of combined driving and historical carriage driving, sports enjoyed by people of all ages, has allowed some buggy whip manufacturers to stay in business, serving this specialty niche market. Foremost among these is a company in Westfield, Massachusetts.

Thu, 05/02/2013 - 10:54 | 3522406 patb
patb's picture

Buggy whips are not entirely gone. A resurgence of interest in the international sport of combined driving and historical carriage driving, sports enjoyed by people of all ages, has allowed some buggy whip manufacturers to stay in business, serving this specialty niche market. Foremost among these is a company in Westfield, Massachusetts.

Wed, 05/01/2013 - 20:57 | 3520643 Jim B
Jim B's picture

Obama has a war on coal driving up electricity rates.  These idiots expect people to purchase over priced, short range, unproven vechicles.....  

When they come up with micro-nuclear or fusion reactors, I might give an electic vechicle a second look!

PS.  Our temps have been averaging a good 20 degrees below normal, I am wishing for some global warming about now! 

Wed, 05/01/2013 - 22:49 | 3521045 Osmium
Osmium's picture

Yep.  Got a little more snow today and maybe more tonight.  Getting damn tired of it.

Thu, 05/02/2013 - 10:51 | 3522386 patb
patb's picture

when I see the 2nd armored division surrounding coal pits, i'll believe it, until then

it's just the coal barons complaining that they no longer own the keys to the white house.

Wed, 05/01/2013 - 21:05 | 3520662 Meremortal
Meremortal's picture

Wow. I know more about (not) investing in electric cars than Hank Paulsen.

 

So I've got that going for me.

Wed, 05/01/2013 - 21:08 | 3520670 buzzsaw99
buzzsaw99's picture

Hanky P will undoubtedly steal it back with interest.

Wed, 05/01/2013 - 21:15 | 3520709 Northern Lights
Northern Lights's picture

My legs have gotten me better mileage than any one of these fucking cars.

Wed, 05/01/2013 - 21:34 | 3520775 mendigo
mendigo's picture

Hank "We're doooomed"Paulson

Wed, 05/01/2013 - 21:35 | 3520779 Rick Blaine
Rick Blaine's picture

BUT IT'S FOR THE CHILDREN!!!

 

(man, I'm easily amused)

Wed, 05/01/2013 - 22:17 | 3520922 brettd
brettd's picture

600 Billion should have bought new roads and bridges from coast to coast. But we got this....

Wed, 05/01/2013 - 22:25 | 3520956 jtlien
jtlien's picture

All these electric cars are meant to stop global warming.

I just wish it would stop SNOWING right now here in Wisconsin on May 2.  Global warming?

Polar bears are heading SOUTH this year.

I guess you could make a case for them providing some energy independance from foreign oil.   

But why not just do compressed natural gas at a lost less cost?

 

Wed, 05/01/2013 - 22:35 | 3521002 RyeWhiskey
RyeWhiskey's picture

This is just a tax-evasion scheme.... He hates paying taxes you know.

Wed, 05/01/2013 - 23:41 | 3521222 Rathmullan
Rathmullan's picture

Gotta pay to play. How do you value the worth of some private equity loss relative to staying out of prison (where you belong) and for opening up 10 figure opportunites that are a cinch because they are inside?

Wed, 05/01/2013 - 23:48 | 3521235 Walt D.
Walt D.'s picture

Another one bites the dust.

Same old Mel Brooks "The Producers" scam. Give money to a company that is going to fail. The money disappears, the company files for bankruptcy. Nobody knows where the money went. "Nobody is interested in the finances of a Broadway flop."

Wed, 05/01/2013 - 23:56 | 3521247 Manic by Proxy
Manic by Proxy's picture

I loved it in Star Wars when Coda said "File for Chapter 11, I will".

Thu, 05/02/2013 - 01:46 | 3521408 Floodmaster
Floodmaster's picture

Elon Musk is an American hero.

Thu, 05/02/2013 - 10:59 | 3522431 patb
patb's picture

90% of all new ventures fail, there were once400 car makers in the US, that soon consolidated

down to less then 5 then finally the big 3.

 

 

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