Electric Bus Manufacturer That Received Millions From Biden Set to File Bankruptcy

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An electric bus manufacturer heavily funded by government programs, including millions in U.S. taxpayer dollars from the Biden administration, is now on the brink of financial collapse, according to a new report from Bloomberg.

Key Facts:

– Lion Electric Co., based in Quebec, is seeking creditor protection after its credit arrangements expired.
– The company received about $38 million in U.S. taxpayer funds to supply 97 electric school buses in Texas and Louisiana.
– It carried $392 million in debt while reporting a steep drop in sales, from $80 million last year to $31 million this year.
– The firm’s workforce fell from 1,400 employees to around 300, and its market value plummeted from $4.2 billion to about $57 million.
– Quebec and Canadian federal investments totaling over C$200 million are now at risk.

The Rest of The Story:

Lion Electric initially gained attention as part of a broader push toward green energy in North America.

The Quebec government poured in significant sums, and the company secured additional funds from the U.S. to supply electric school buses, hoping to tap into growing climate-focused transportation policies.

Yet, as expansion costs piled up, sales tumbled, and no new investors emerged.

With deadlines passed and creditors unwilling to extend further, Lion Electric now plans to file for bankruptcy under Canadian law.

Its once-ambitious facilities, including a bus plant in Illinois and a battery assembly site in Quebec, stalled as the firm shed jobs and sold assets.

As other Quebec-based EV ventures also struggle, these developments raise difficult questions about the viability of government-backed green projects that fail to find a stable foothold in the marketplace.

Commentary:

This situation illustrates what can happen when government attempts to force market demand where it does not truly exist.

Electric school buses may sound forward-thinking, but they often cost more than their traditional gasoline counterparts and face severe charging infrastructure gaps.

Hauling young students over long distances requires reliability, and current electric buses simply cannot match the convenience or range of established technology.

When government dollars pour into projects that have not yet earned their place in a competitive market, the result is wasted public funds.

Instead of driving innovation through organic demand, heavy-handed interventions risk leaving taxpayers footing the bill for expensive experiments that never pan out.

The Bottom Line:

Despite large sums spent on green transportation dreams, the market was not ready.

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The result: millions of taxpayer dollars lost and a sobering lesson in unrealistic policy-driven investments.