Another EV Maker Bites The Dust: Arrival Joins Growing List Of Bankrupt Startups

Electric vehicle startup Arrival SA ARVLF announced on Monday that the company has been declared bankrupt, sharing the same fate as American EV maker Lordstown Motors and Proterra.

What Happened: The company filed a bankruptcy petition with the court on May 16, and the court rendered a judgment on May 22 declaring it bankrupt, Arrival said in a statement on Monday.

As of May 22, the company’s board of directors no longer manages the company’s affairs, and Philippe Thiebaud was appointed by the court as bankruptcy trustee of the company.

U.K.-based Arrival once had grand plans to revolutionize the global EV production industry. Arrival ended the first half of 2023 with approximately $43 million in cash and cash equivalents. The loss for the half-year was $155.7 million, compared to a loss of $100 million in the corresponding half of 2022.

Why It Matters: In January, the company was notified by Nasdaq about an upcoming suspension in the trading of its securities and subsequent delisting due to a lack of compliance with the exchange’s listing standards.

Arrival has now joined the growing list of EV companies to have filed for bankruptcy recently, including Lordstown, Proterra, and Volta Trucks, amid high production costs and a lack of access to capital.

Arrival went public in March 2021 through a SPAC merger with CIIG Merger Corp. The shares then opened at $22 but slumped to below $1 by the time of delisting.

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