Swedish electric truck maker, Volta Trucks announced Tuesday that the automaker has decided to file for bankruptcy after supplier difficulties lead to financial difficulties.
Volta, with operational centers in the United Kingdom, attributed its production setbacks and capital-raising challenges to the bankruptcy of electric vehicle parts supplier Proterra in August, coupled with the prevailing uncertainty surrounding its battery supplier.
In a statement released by the company, the board of directors said it had "not taken this course easily or lightly and is fully aware of the significant impact this will have on the organization’s dedicated workforce".
Volta had secured close to 300 million euros ($316 million) from investors and boasted an order book of over 5,000 vehicles.
Selecting an Austrian factory for its production needs, the company had been actively striving towards achieving mass production goals.
In recent times, several other electric vehicle startups managed to amass billions in funding; however, many encountered challenges in transitioning to mass production.
With the financial landscape for startups becoming increasingly challenging due to soaring interest rates, notable companies such as Proterra and Lordstown have also succumbed to bankruptcy.