According to sources close to the manufacturer and reported by the American media, the company is about to go to court
Nikola Corporation, a manufacturer of electric and hydrogen-powered trucks that also had a joint venture with Iveco, is considering filing for bankruptcy, according to sources close to the company. Nikola has had a tumultuous time, swinging between being a rising star on the stock market and a company tainted by scandal.
It is currently working with a law firm and financial advisors to prepare for a possible filing under US law that would allow it to reorganise and protect itself from creditors.
According to Bloomberg, Nikola’s financial difficulties have been exacerbated by a decline in cash reserves, which fell to $198.3 million at the end of September 2024 from $464.7 million at the end of 2023.
Nikola Tre BEV
Despite efforts to raise funds through debt and equity offerings totalling $300 million, the company’s financial stability remains uncertain. Nikola has produced more than 80 lorries, but has a net loss of almost $200m and only has sufficient liquidity until April 2025.
Nikola Tre FCEV
The Wall Street Journal and Reuters reported that in response to these challenges, Nikola is considering several options, including the sale of parts of the company or a partnership, to raise capital and ensure business continuity. News of the possible financial difficulties had a significant impact on the value of Nikola’s shares, which fell 20 per cent to 60 cents in after-hours trading.
Nikola Tre BEV
These developments mark yet another chapter in the turbulent history of Nikola, which, let us not forget, also boasts an important European partnership with Iveco, from which it supplied cabs for the American market and, in turn, provided the know-how for the electrification of S-Ways. A company that was once valued at almost $30 billion and is now struggling to survive in the highly competitive electric truck market.
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