CODA Automotive, one of the lesser gabbed-about electric car companies, just got a big break. Along with its joint venture partner, battery maker Lishen Power Battery, the company has just taken in $100 million in direct capital, with the promise of $294 million more down the road from China's Bank of Tianjin Joint Stock.
Based in Santa Monica, Calif., the company has been anticipating support from China's government and banks for a while, airing earlier that it was planning to receive up to $500 million to develop its fully-electric economy sedan for eventual release in the country.
But that doesn't mean that CODA will only operate in China. It won't even launch there; instead it's hoping to sell 15,000 of its cars in the U.S. by the end of next year. It will be manufacturing its vehicles and batteries in China (Lishen is based there), however, creating countless jobs and injecting technology and capital into the advanced automotive industry there.
The $100 million and $294 million line of credit will be used to swiftly set up powertrain manufacturing operations in preparation for commercial release.
CODA's car is estimated to have a real-world driving range of 90 to 120 miles, making it ideal for a 40-mile commute to work and back. It's still a bit bogged down by its charging system, though. Today it takes 2 hours to juice the battery up enough to go that 40 miles.
These stats make it even more suited to the Chinese consumer market, where commutes are short, and people are looking to get good gas mileage and spare the air. This is the same wave that China's own BYD Auto hopes to ride, with plans to launch its affordable electric sedan on the Chinese market next year.
When CODA first emerged last year as a spin-off from low-speed electric vehicle maker Miles EV, it said it planned to sell its electric sedans for about $45,000. But it has since changed its tune, predicting a price the low $30,000s.
The company better hope this is feasible, or it probably won't stand a chance against General Motors' Chevy Volt, or Nissan's Leaf. The latter just announced today that it could be selling for less than $20,000 after federal and state tax incentives.
Earth2Tech reports that CODA has also tacked an undisclosed amount onto its third round of venture funding, boosting its total capital raised from $74 million to more than $100 million. It raised $25 million in early January. The company is backed by Angeleno Group, Piper Jaffray, and its executive team, in addition to other private investors.