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Another One Bites the Dust

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.

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