A123 Has Four to Five Months of Cash Left
The electric vehicle battery maker edges closer to bankruptcy.
We’ve followed electric car battery maker A123 from near the beginning, and now it seems to be near its end. On Friday, the company told investors that it only has four to five months of cash left, provided it gets access to an expected $30 million.
A123 is looking for ways to cut costs and raise more money. While the company has promising battery technology and orders from major automakers, it has been plagued by high manufacturing costs (it lost 57 cents per dollar of revenue), cancelled orders, and recalls of faulty batteries.