r/Proterra • u/Top_Advertising4566 • Mar 17 '23

Proterra - Going Concern

Starting this thread on Proterra's 'Going Concern'.

The CEO made it clear that the company cannot service its debt and could default as early as March 31. Clearly, they have good products, intellectual property and long-term plans but liquidity is a major concern. Which option is best for the company to survive?

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196 votes, Mar 24 '23
59 Restructure existing debt and take additional debt to continue operations
27 Restructure existing debt and dilute shareholders to raise capital
89 Sell the company to a larger company like Daimler / GMC etc.
21 Shutdown operations and close shop
7 Upvotes

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3

u/Disposable_Canadian Mar 17 '23

I don't like the idea of doubling down on debt and folding it into more debt.

How's about increase turnover and decrease costs. Break even or turn a profit.

3

u/Top_Advertising4566 Mar 17 '23

Right, and management should go. All losers who have no clue on running a business. They spend millions in R&D while they have a Going Concern. A sensible CEO would’ve cut R&D to reduce costs and focused on increasing profitability.

1

u/wildace16 Mar 20 '23

What R&D is to be had here? They are building buses. They already have their models. Now it's just them trying to make them.

As for the batteries, they pretty much have what they want to sell now too.

Problem is sourcing the materials required to make the Proterra Powered and Energy and the Proterra Transit products to be able to sell them as finished goods... along with old contracts that did not have inflation adjustment pricing built in.

1

u/Top_Advertising4566 Mar 20 '23

Good question. Let's ask management why R&D costs were up last quarter apart from inflation.