ELECTRIC CARMARKER THINK LOSES CRUCIAL INVESTOR, FUTURE LOOKS DIM

[marwan25]

In late 2009 Ener1, a lithium-ion battery manufacturer, announced that it would become the largest investor in the carmaker – but now the battery maker has announced that it is selling its stake in Think and recording a $73.3 million loss from the venture, according to Automotive News.

When a spokesman for Ener1 was asked about the move, he said, “We don’t think the light-duty [EV] transportation market will ramp up as quickly as the medium-to-heavy duty markets, so we’ve decided to refocus our efforts in that direction.”

Ener1′s stake represented a 31 percent stake in Think, but the battery producer decided to cut its losses and get out of Think before losing even more funds. Think’s only model, the City EV, boasts just a 100 mile max range with a top speed of 70 miles per hour, but demands a $36,495 purchase price to do so. Comparatively, Nissan’s Leaf electric car has a similar range, a top speed of 90 mph, but a price of just $32,780 – and it is larger to boot.

Analysts have suggested that in order for the Think City to be competitive in the market place it will need to drop its asking price by about $10,000, a drop that is likely not possible if Think hopes to make any profit on the sale of each vehicle.

Despite the setback, Think is still searching for new investors and hopeful that the City will take hold in the European market.

References
1.’EV maker Think…’ view