Amid Tesla’s rapid expansion of its NACS connector and Supercharger network, Charge Enterprises, a key player in the electric vehicle (EV) charging sector and partner of Stellantis and GM, has filed for bankruptcy. Led by former GM and Ford executive Mark LaNeve, the company announced plans to restructure, with senior lender Arena Investors set to take over its operations.
Stellantis, recently embracing Tesla’s North American Charging Standard (NACS), had partnered with Charge Enterprises to deploy EV chargers at over 2,600 dealerships nationwide. However, the company’s financial woes led to a restructuring plan, with creditors being polled on the proposed changes.
Charge Enterprises, based in New York, provided comprehensive project management services in electrical, broadband, and EV charging markets. Despite generating substantial revenue, reaching $132.3 million in Q3 of last year, financial liabilities outweighed assets, leading to the bankruptcy filing.
Blaming its financial struggles on dealings with investment adviser Korr Acquisitions Group Inc. and its former chairman, Kenneth Orr, Charge Enterprises alleges mismanagement of funds. Legal disputes between the company and Korr Acquisitions further complicate the situation, with accusations of misallocated funds.
The bankruptcy of Charge Enterprises adds to a series of setbacks in the EV industry, with companies like Lordstown Motors Corp. and Proterra also filing for Chapter 11. Additionally, recent layoffs at LG Energy Solution and Our Next Energy underscore the challenges facing the sector.