Proterra
Electric bus manufacturing has thin margins and long sales cycles. Government procurement is slow and unpredictable.
2004 → 2023
$1B+
EV/Automotive
USA
IdeaProof AI Failure Score
What Happened: The Timeline
2004
Proterra founded to build electric transit buses
2017
Raises $140M from Daimler, delivers 100th bus
Jun 2021
Goes public via SPAC at $1.6B valuation
2022
Supply chain issues, production delays, cash burn accelerates
Aug 2023
Files Chapter 11 bankruptcy
Root Causes
Proterra was a pioneer in electric transit buses, going public via SPAC in 2021. Despite strong government support for clean transportation and partnerships with major transit agencies, the company couldn't scale production profitably. Each bus cost $750K-$1M to produce, margins were razor-thin, and municipal procurement cycles stretched 12-24 months. Supply chain disruptions and battery cost volatility further compressed margins. Proterra filed for Chapter 11 in August 2023, despite over $1B in total investment. The lesson: even mission-aligned companies in growing markets can fail if unit economics don't work at scale.
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