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Posted by: Maricopa Lawyers on Apr 30, 2013

You may not have heard much about the California start-up, Coda Holdings, which aimed at getting a piece of the electric car market a few years back. In 2012, the company released their own vehicle, powered only by a charge, much like the Nissan Leaf, but only sold 100 of the cars.

The Los Angeles based company filed for Chapter 11 federal Bankruptcy in Delaware Tuesday morning after their five seat sedan failed to gain traction with consumers or gain positive attention. The brand is seeking to sell their business within the next month and a half. The company listed their assets to be around $50 million dollars, and their debts to be nearly double that, even with significant investments around $320 million throughout the years. Coda is also facing a barrage of lawsuits citing unpaid debts and a class-action lawsuit by a former employee.

Trouble first started when they delayed the launch of their car by two years, siting problems, especially with the charge and range of the car. The car was said to get about 125 miles per charge but only actually averaged about 88 miles per charge. Critics and federal loan agents described the car as too expensive and outdated to receive funding in order to compete with other models like Nissan or Tesla.

The good news for Coda is that they may now be able to focus on their energy storage business, which could prove to be more lucrative than the EV market. Their battery technology involves a similar concept to their ones which were used in the cars: lithium iron phosphate powered systems. One of the big differences is that the batteries used in the vehicles were flat and these 25 new grid batteries are stacked on top of one another to create 1 MW/h worth of storage.