Breaking Finance News

ECOtality Down 80 Percent- What Does the Company Make? (ECTY)

Shares of ECOtality (NASDAQ: ECTY) were down more than 80 percent Monday after the company revealed that it had not generated enough revenue to fund its operations in the second half of 2013, according to a regulatory filing.

You can read our breaking coverage of the news by clicking here but what does the company make?

Prior to today’s plunge ECOtality was a $7 million company that makes chargers for electric cars. Its plan was to create the largest network of smart charging stations in the United States. It operates under three businesses–Blink, Minit-Charger, and eTec Labs and is said to employ about 155 people.

The U.S. government funded company has ran into issues that casts doubt on its ability to realize its goal. First, ECOtality hasn’t reported an annual profit since going public in 2005 and has capital lease obligations of $71,000 as well as long-term debt of $188,000. Second, it’s not sure that it can resolve overheating issues in some of its installed chargers.

While investors hear a lot of good news from electric vehicle maker, Tesla (NASDAQ: TSLA), that’s more the exception than the rule. The electric vehicle market hasn’t taken off among consumers because of its high price and inconvenience of having to charge the vehicle. EV maker Coda Holdings filed for bankruptcy in May when it could only sell about 100 of its electric vehicles. Fisker Automotive is said to be close to a bankruptcy filing after laying off 75 percent of its employees in April and now looking for investors.

[stock-tools exchange="NASDAQ" symbol="ECTY" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned.

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