EV infrastructure manufacturer EcoTotality has filed for bankruptcy after sales failed to increase leading to massive debt obligations and crash of its shares.
EcoTotality was awarded an initial $99.8 million grant and supervision of the US federal government EV project, meant to accomplish the installment of 15,000 commercial and residential EV charging stations across the continent. The green energy transportation project was realized in Blink Network which has over 4,000 EV chargers across major US cities and states.
However, the company is reported to never have recorded a profit since it publicly started operations in 2005 and has incurred massive debt and lease obligations. EcoTotality initially reported insufficient revenue from EVSE (Electric Vehicle Service Equipment) sales in order to continue operations in the next year. In August of 2013 the company suffered a technical glitch that affected thousands of Blink Level 2 charging stations. The company will likely offer its EV charging stations assets for sale or auction.
The company also cited testing failure of its Minit Charger industrial product line and announced it will not be launched anymore.
The US Department of Energy (DOE) cut off payments to EcoTotality for its EV project in response to the company’s financial woes.
A few days after the DOE announcement, EcoTotality went effectively bankrupt. The DOE stated it will not reimburse any costs during EcoTotality’s suspension and that the company cannot incur any new obligation under the award.
With EcoTotality’s bankruptcy, its two other businesses Minit-Charger and eTec Labs blink out together with its EV charging network.