Think Gets $5.7M to Stay Alive—For a Little While

Norwegian electric carmaker Think is getting about 40 million crowns ($5.7 million) to try to save itself from bankruptcy.

The loan came from several private investors, including Ener1 Group. Ener1 Group is a big shareholder of Ener1 Inc., which has a deal to supply lithium-ion batteries to Think.

The emergency funding falls short of the 100 million to 200 million crowns ($14 million to $28 million) that Think said it needs to survive. The carmaker has asked for the government help, but hasn’t received a positive response.

The company temporary halted production of its two-seat, all-electric car last month when it ran out of money. Like fellow startup carmaker Tesla Motors, Think has found it difficult to raise capital amid the global financial market meltdown.

The new loan will help Think stay afloat for just a little while until it can raise more money.

"The financing will allow Think to focus its efforts toward the next stages of the restructuring process," Think said in a statement.

It was only back in November when the company announced it had started to sell its first model, the Think City. The Think City isn’t cheap -- it will set you back 200,000 crowns ($28,690), and that doesn’t include the cost of the battery pack. Car owners can lease the batteries for 1,275 Crowns ($183) per month (see Think’s Electric Car Is Here, But Bring Your Wallet).

The compact car can go 180 kilometers (112 miles) on a single charge and enjoys a top speed of 100 kilometers (62.5 miles) per hour.

Before the company was beset by financial woes, it was peddling the Think City only in Norway, but it was planning to start selling the electric auto in Denmark starting in the first quarter of 2009.