- Nikola’s stock has plummeted 95% in the last 12 months, sparking urgent survival talks.
- The company faces a cash crunch, with enough funds only for the first quarter of 2025.
- Despite setbacks, Nikola continues to produce its Tre electric truck amid several recalls.
Cracking into the trucking business is no easy feat, just ask Nikola. Not only was its founder and former CEO Trevor Milton convicted of fraud in 2022 and sentenced to four years in prison, but the company has so far failed to make a positive name for itself – despite spending years developing some interesting electric trucks. Now, it’s being reported that parts or all of Nikola could be sold.
Unnamed sources toll Bloomberg that Nikola is in financial trouble and needs a savior. While a final decision has yet to be made by management, it’s possible the company could be sold, or it may need to bring on new partners. It’s also possible it could be forced to raise new funds.
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Nikola shares have lost roughly 95% of their value over the past 12 months, and the firm desperately needs to turn things around. Current chief executive Steve Girsky is said to be leading the effort to save it from the cash crunch. In October, Nikola said it only had enough cash to fund its obligations through the first quarter of 2025. At the same time, Girsky noted that Nikola was “actively talking to lots of potential different partners who value what we do and value what we’ve built,” Bloomberg reports.
“Despite external headwinds in the EV sector, we have been relentlessly working to raise capital, reduce our liabilities, preserve cash and provide excellent service for our customers,” the company added in a recent statement.
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Since Milton was axed by the company he created, the company has continued to produce its battery-electric and hydrogen-electric (FCEV) trucks. It’s been led by Girsky since August 2023 and has had to make several recalls over the past couple of years. In July 2023, it was revealed one of Nikola’s trucks reignited roughly a month after previously being damaged during a fire at a parking lot in its Arizona headquarters.
