You took 3 billion – and now Volta Trucks will go bankrupt

Swedish startup Volta Trucks – which makes electric trucks – has shut down. This is happening after the company failed to obtain ongoing financing as a result of one of the company’s most important suppliers, battery manufacturer Proterra, entering the reconstruction process, according to a press release from Byggmästare Anders J Ahlström Holding, which owns about 10 percent of the company. Shares in Volta on June 30.

Last summer, Byggmästaren’s ownership in Volta Trucks was valued at SEK 440 million, valuing the trucking company at SEK 4.4 billion. Now the owner writes that the value of the possession is zero.

“The news that broke at the beginning of August of this year that the company’s battery supplier had entered US Chapter 11 occurred at the worst time ever when production was scheduled to ramp up, the product was being delivered to waiting customers, and gradually increased uncertainty among… In the end, despite great efforts, financing is impossible, say various stakeholders Thomas Bergstrom Who is the CEO of Byggmästaren in a comment.

“This is very sad and sad, not least for the founders, employees and all suppliers and customers who have shown great interest in Volta Trucks. For all investors, it is a huge disappointment.”

During the third quarter of 2023, the main owner pumped another 40 million into a loan for Volta Trucks.

This spring, the European Investment Bank offered risk financing loan opportunities worth approximately SEK 450 million. The idea was to support funding for Volta Trucks’ rollout of the “Truck as a Service” concept.

It has been taken into the billions

Volta Trucks was founded in 2017 by Karl Magnus Norden And Kiel and Alwyn. The Swedish company, which has several foreign subsidiaries, had sales of 51,000 kroner in the financial year ending in June this year and achieved operating profits of 63 million kroner, an increase in loss from 38.4 million kroner the previous year.

In the last financial year, the company undertook two rounds of financing, in September last year and in February 2022. In total, the capital increase adds up to 281 million euros, equivalent to more than 3 billion kroner.

Volta Trucks has not sent any press release in regards to the principal owner announcement. The company’s last Prime Minister was a week old and revolved around the fact that it had started a collaboration with Société Genérale to expand its range of trucks as a service.

Volta confirms

On Tuesday morning, a statement was issued by the Volta Board of Directors.

The book begins by listing all the successes Volta Trucks has achieved, “revolutionizing commercial vehicles for a sustainable future.”

Volta then writes about setbacks.

“Like all major companies in the electric vehicle sector, Volta Trucks has faced challenges over time,” the board wrote, adding that the battery maker’s rebuilding made it difficult to raise capital in an already cold climate.

“Consequently, the Board of Directors has taken with deep and sincere regret the difficult decision to take steps towards bankruptcy proceedings in Sweden.”

The same measures will be taken for the UK subsidiary and operations in other countries, according to Volta.

“The Board has not taken this path lightly and is fully aware of the significant impact it is having on the company’s dedicated workforce, as well as customers and partners. We want to thank the Volta Trucks team from the bottom of our hearts and we are all extremely proud of their pioneering work to deliver an innovative zero-emission vehicle.”