Nikola Corp., the Phoenix-based producer of electric trucks, is currently weighing its future, with options including business partnerships, seeking additional capital, or possibly divesting parts of the company. This comes amid rumors that the company may be facing bankruptcy, as reported by ABC15. Last Friday, a spokesperson from Nikola confirmed the company is "evaluating options for its business" in light of "external headwinds in the EV sector," according to a statement given to the Business Journal.
Nikola's current situation appears precarious, given the company's need for up to $100 million through a common stock sale to sustain operating costs, truck manufacturing, and the development of hydrogen refueling stations. In addition to efforts to issue equity or debt, pursue strategic partnerships, license arrangements, or secure financing from government or financial bodies, as detailed in a December 9 regulatory filing, the company also trimmed its workforce in December and previously in October. FreightWaves, through supply chain intelligence, noted that this move is likely part of a strategy to "better align" staffing and improve its financial runway, as mentioned by the Business Journal.
However, CEO Steve Girsky remains at the helm, despite rumors of his departure that gained traction after Fred Lambert, the editor-in-chief of Electrek, suggested on the social media platform X that Girsky's exit and the company's bankruptcy were imminent; Nikola has ardently refuted these claims, stating reports of Girsky's departure are "100% false" in discussions with the Business Journal. Nikola's stock has seen volatile shifts, hitting a 52-week low before seeing a slight recovery, and this dubious stability occurs against a backdrop of Q3 reports indicating a $199.8 million net loss, and an overall deficit tallying at $3.6 billion since its inception.
Despite growth challenges, Nikola is pushing forward with its "hydrogen highway" plan, launching its first Hyla hydrogen fueling station in February 2024 and aiming for ten stations by the end of next year. The company is improving existing sites as it expands. Nikola’s battery electric trucks have reached 1.5 million miles driven by customers, a step toward its infrastructure goals. With plans to deliver more hydrogen fuel cell trucks by year’s end, the company’s full-year financial results are still awaited, leaving uncertainty about its financial health and future. Nikola has not yet released its fourth-quarter and annual figures.
