Following in the footsteps of the Solyndra failure, electric car battery maker A123 Systems filed for bankruptcy last Tuesday…after it received $249.1 million in government funding in 2009. Solyndra received $535 million from the government before it collapsed.
Things started to sour when the company overestimated demand for its rechargeable batteries…and then was hit with unexpected costs after a battery recall.
In 2009, A123 stock was worth $13.50…now its worth 6 cents. And other than a very short-lived signal to buy in the spring of 2011 that quickly reversed, the stock has been a sell.
A123 was one of 29 companies in the EV battery market that got $2 billion in government grants. The A123 loss wasn’t as big as the Solyndra loss, but it was a setback for green technology and a black eye for Washington, none the less. And it was another example of policy failure and wasteful spending of taxpayer money.