Nassau County’s Electric Vehicle Infrastructure Faces Uncertain Future as Major Charging Companies File Bankruptcy

While Nassau County has been expanding its electric vehicle charging infrastructure with 211 Electric Vehicle Charging Stations mapped across Nassau County, New York, the broader EV charging industry is experiencing significant financial turbulence. Several major charging station manufacturers and service providers have filed for bankruptcy in 2024 and 2025, creating potential ripple effects for local infrastructure investments and businesses throughout Long Island.

The Growing Bankruptcy Crisis in EV Charging Infrastructure

The electric vehicle charging industry, once seen as a guaranteed growth sector, is facing an unprecedented wave of bankruptcies. Charge Enterprises Inc., a public company building charging stations for electric vehicles and broadband infrastructure, filed bankruptcy to implement a restructuring plan that will hand control of the business to senior lender Arena Investors in March 2024. This company had significant partnerships, as Stellantis, which just adopted Tesla’s North American Charging Standard (NACS), partnered with Charge Enterprises last year to install EV chargers at its 2,600-plus dealerships across the US. The company also installed chargers for Volvo, Ford, and General Motors.

The bankruptcy trend continued with other major players. This week, Tritium, the originator of charging piles, disclosed a bankruptcy plan to the U.S. Securities and Exchange Commission. Subsequently, the stock price plummeted 66% in one day, which can be described as tragic. Additionally, Ideanomics Inc., which owns technology used to charge electric buses and other commercial vehicles, has filed bankruptcy months after securities regulators accused its executives of misleading investors about its financial performance.

Impact on Nassau County’s EV Infrastructure

For Nassau County residents and businesses, these bankruptcies create several concerning scenarios. Let’s not talk about personal fates at this point but about the questions that are inevitably asked when it comes to the continued operation of the purchased product. In our case, as we get this question a lot: Is it possible to run EVerest on this charger from that manufacturer?

The practical implications are significant. Will you have access to spare parts when the manufacturer goes bankrupt? To ensure your operation is impacted as little as possible by the bankruptcy of your supplier you have to have the right-to-repair in all our contracts. This is particularly concerning for Nassau County businesses that have invested in charging infrastructure, as The cost of installing a Level 2 charger can vary, averaging around $2,000. However, various rebates are available that can significantly reduce this cost.

Financial Causes Behind the Crisis

The root causes of these bankruptcies reveal systemic issues in the industry. Looking through Tritium’s financial report, the secret of bankruptcy is hidden in it: from 2020 to 2023, Tritium’s total revenue was US$46.96 million, US$56.15 million, US$85.82 million, and US$185 million respectively, with a year-on-year growth of 19% in the past three years. But a closer look shows that its net losses were US$34.44 million, US$63.09 million, US$129 million, and US$121 million respectively. This company has been established for 23 years, but it still cannot make money and has never achieved profitability.

The competitive landscape has also shifted dramatically. Especially when Tesla builds charging infrastructure at a much lower cost and opens its charging network to all EV brands. This has created pricing pressure that many traditional charging companies cannot withstand.

Legal Implications for Nassau County Stakeholders

When charging infrastructure companies fail, the legal ramifications can be complex and far-reaching. Property owners, businesses, and municipalities that have entered into contracts with these companies may find themselves in difficult positions. Issues can include incomplete installations, warranty claims, ongoing maintenance obligations, and equipment that becomes obsolete without manufacturer support.

For Nassau County residents and businesses facing these challenges, seeking experienced legal counsel is crucial. The Frank Law Firm P.C., located in Nassau County, understands the local business environment and can provide guidance on contract disputes, warranty claims, and other legal issues that arise when infrastructure partners fail. Whether you’re a property owner with a non-functioning charging station or a business that invested in charging infrastructure through a now-bankrupt company, a qualified Bankruptcy Lawyer Nassau County can help protect your interests and explore available remedies.

Moving Forward: Protecting Your Investment

As Nassau County continues to develop its EV infrastructure, stakeholders should take proactive steps to protect their investments. This includes carefully reviewing contracts with charging station providers, ensuring proper insurance coverage, and understanding maintenance and warranty obligations before equipment failures occur.

The current wave of bankruptcies in the EV charging industry serves as a cautionary tale about the importance of due diligence when selecting infrastructure partners. While the transition to electric vehicles continues, the financial instability among charging companies highlights the need for careful contract negotiation and legal protection.

For those already affected by these bankruptcies or concerned about future impacts, The Frank Law Firm P.C. offers comprehensive legal services to Nassau County clients dealing with business disputes, contract issues, and bankruptcy-related matters. The Frank Law Firm P.C. is a foreclosure law firm in Nassau County, NY, offering assistance with mortgage modifications and loan restructurings. Contact us today at 516-246-5577.

As the EV charging industry continues to evolve, Nassau County stakeholders must remain vigilant about the financial stability of their infrastructure partners and seek appropriate legal counsel to navigate these challenging times.