FreeWire Technologies has released an official statement regarding news that it would close the doors at its Newark, CA facility June 24th.
The official statement from FreeWire seeks to provide clarity on the company’s current situation while, at the same time, reassuring workers as it seeks additional funding. You can read the official statement (received via email at 6:28PM CST; 06MAY2024), and the original article (with source links) below.
As a company committed to transparency and open communication, we want to address recent discussions regarding FreeWire’s financial situation.
The EV market is currently facing some headwinds, and like many players in the industry, we’re navigating through these challenges. However, it’s important to note that FreeWire’s quality initiatives and production are better situated than ever before. Our dedication to quality improvement has strengthened our market position during these uncertain times.
Additional capital is necessary to further support our growth initiatives and ensure continued success. Therefore, we are actively seeking further funding, a step that aligns with strategies pursued by many companies in the industry. Meanwhile, we are continuing operations and supporting our valued customers, while making efforts to right-size the company.
We remain confident in our team, our technology, and our vision for the future of clean energy solutions. We appreciate the ongoing support of our stakeholders and partners as we work to overcome these challenges and continue to drive positive change in the EV market.
FREEWIRE TECHNOLOGIES; VIA EMAIL
Novel EV fast charging solution FreeWire has announced plans to close its Newark corporate headquarters and lay off virtually all of its employees.
FreeWire is able to place DC fast charging solutions without the need for expensive utility buildouts by using batteries to store energy until it’s needed. The batteries can be effectively “trickle charged” with a standard 110 or 220 AC connection, then “dump” that charge quickly – enabling a 200 kW DCFC experience for EV drivers at a fraction of the cost of conventional DC infrastructure.
It’s a clever system, but despite high-profile mentions from the Biden-Harris Administration and freshly inked deals with national brands like Chevron and General Motors, reports indicate that FreeWire will shutter its primary business at 7200 Gateway Blvd. in Newark, California this June.
In a mass layoff notice, FreeWire said the site’s closing is expected to impact “all” of the company’s 113 on-site employees. That news was picked up by The Layoff Tracker, who posted it on Twitter X this past Friday (below).
🚨 LAYOFF ALERT – California 🇺🇸
— The Layoff Tracker 🚨 (@WhatLayoff) May 2, 2024
FreeWire Technologies, Inc. will close permanently, affecting 113 employees at 7200 Gateway Blvd., Newark, CA 94560 on June 24, 2024, as indicated in a WARN notice. pic.twitter.com/jzeFV40Fbf
FreeWire moved into the 66,000-square-foot facility back in 2022. A press release issued at the time labeled the site FreeWire’s “global headquarters and hub for R&D, testing, and manufacturing.”
Top comment by Herkfixer
The problem is that most of these companies aren't trying to build these out for the future. They are trying to build them as cheap as possible to get all the freebies from the govt. Once they get theirs, they can dump the tech and run because maintaining them over the long run will become a very large operating expense that none of these brands wants to take on. It's not that the tech is bad, or even difficult to maintain, it's just that "profit" is their largest motivator and maintenance kills profit.
Even Mr. "subsidies are for losers" got the subsidies and then cut loose SC.
A quick scan of the company’s website doesn’t shed any more light on the layoffs. Instead, a press release published May 2nd (the same day that news of layoffs broke) highlights the installation of a FreeWire charging station at a South Bay, California truck depot.
Electrek’s Take
FreeWire’s announcement comes just day’s after Elon Musk sacked the Tesla employees running the Supercharger network – news that upended the entire EV charging space and seemingly made Electrify America the most important player on the board. One can’t help but wonder whether or not FreeWire might be able to find a rescuer willing to take a flyer on it – but it’s just as likely that the added uncertainty in the EV charging business will make that rather unlikely.
That’s my (non) take, anyway. What’s yours? Scroll on down to the comments and let us know what you make of FreeWire’s apparent collapse, and what you think happens next.
SOURCES: BizJournals; The Layoff Tracker., WARN Tracker.
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