Electric van maker once valued at £10bn collapses into administration

Arrival is departing

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Arrival is departing

Shades of the dot.com bubble. The grand illusions of net zero climate alarmism continue to crumble, but not quickly enough yet.
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A British electric van maker once valued at $13bn (£10bn) has gone into administration after burning through $1.5bn without having sold a vehicle, reports The Telegraph.

Oxfordshire-based Arrival has appointed administrators at EY to find a buyer for the business, blaming “challenging market and macroeconomic conditions”.

Arrival’s Nasdaq flotation in 2021 was the biggest ever for a British company but shares have fallen by 99.98pc as it became clear that the company was unable to service its debts.

“The group’s liquidity position has been impacted by challenging market and macroeconomic conditions resulting in delays in getting the group’s products to market,” the administrators said.

“As such, the Joint Administrators are now exploring options for the sale of the business and assets of the Companies, including its electric vehicle platforms, software, intellectual property and R&D assets, for the benefit of creditors.”

Last week, Arrival said it would be delisted from the Nasdaq after failing to release financial updates or hold an annual meeting. The company has defaulted on its debts despite seeking to cut costs with repeated job losses.
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The company had more than $300m in debt as of last June.

A series of other electric vehicle companies that pursued high-stakes US listings during a market boom in 2020 and 2021, such as Lordstown Motors and Nikola, have also struggled.

Full report here.