Coda Automotive Raises Additional $76 Million, Can Breathe a Bit Easier

By · January 06, 2011

Coda Sedan

During the 2010 Los Angeles Auto Show last November, I had chance to shoot some video with Coda's new interim CEO, Steven "Mac" Heller, and talk a bit of shop about the changes the company's been going through recently. At the time, Coda was in the midst of a series D round of funding and was looking to raise $125 million dollars in private investment as well as "waiting by the phone" for as much as $500 million in federal stimulus loans.

One of our topics during the interview was how much Coda's continued existence hinged on any incoming sources of funding. Heller kind of stepped around the topic by saying, "New companies live on financing—we're entrepreneurs, this is our money. We're very careful about it, but we know that new products take love and passion and a little bit of cash." Even so, you could tell that the funding was a make it or break it endeavor for the scrappy little EV company trying to change the world.

Although there's still no word on the $500 million federal loan, today Coda announced that they raised $76 million in private investment from multiple sources including Harbinger Capital Partners and Riverstone Holdings, as well as more investment from Heller himself, AERIS Capital and Angeleno Group. $76 million may seem like a far cry from $125 million, but as Matt Sloustcher, Coda's Public Relations Manager said in an email to PluginCars.com, "This was only the first close of our series D. We were targeting $75 million for the first close, so we actually exceeded our target. The round is still open and we plan to raise more funds towards our target of $125 million." Even though it's only the first half of their goal, the $76 million injects some new confidence into the company at a time when they really need it.

"The caliber of our investors speaks volumes about our business model and the opportunity that exists within the electric vehicle and battery industry," said Heller in a statement. "I strongly believe that when one thinks about the opportunities presented by the global power battery industry, the global electric vehicle industry and CODA's proven ability to partner with leading companies in both China and the United States, one has to believe that what we are doing today at CODA is one of the most exciting businesses in the world. The consummation of this Series D funding and the backing of Harbinger and Riverstone represents a strong validation of this view."

Comments

· · 3 years ago

I'm not sure I see a place for Coda in the emerging EV market. There doesn't seem to be anything particularly interesting about Coda to set them apart. Like several talked about upstart EV's, I think they'd have done well had they begun producing them for the public a year ago. However, by the time they start selling them, if they do, there will be the Volt, the Leaf, the Focus - just too much competition for an unknown start-up with somewhat behind-the-times styling to be successful. Just my opinion of course, but they really offer nothing over the competition do they? They won't be cheaper; they won't go twice as far; they won't be better looking (pure taste of course). So what is the point of the Coda sedan?

· SteveEV (not verified) · 3 years ago

Agree with the comment above which was written 26 weeks ago. Now, 26 weeks later, I own a Nissan Leaf and my guess is that it is far superior in every aspect including price as compared to the CODA. Car companies such as Nissan already have global distribution channels already in place and offer piece of mind to the buyer that the company will be arround in a few years. Sales of the Leaf will already surpass the Volt at its current pace, and the CODA offers no benifit if and when it comes out. On the other hand, the same can be said about the Tesla Model S, however, this company has sparked interest and an already loyal customer base due in large part to the styling of the car and the active participation of the company's founder Elon Musk. Model S will offer something no other company has offered to date and will beat everyone to the punch..that is a high end, well styled, well appointed, fast, long range electric vehicle sedan. In my view, the more EV car choices the better, but I don't think CODA will compete well enough to survive.

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