Nikola Seeks Financial Lifeline Amid Bankruptcy Rumors

Nikola Corp., the Phoenix-based producer of electric trucks, is currently facing a precarious financial situation, with rumors of bankruptcy circulating. The company is exploring various options to secure additional capital, including business partnerships, seeking additional capital, and potentially divesting parts of the company. This comes as Nikola is in need of up to $100 million through a common stock sale to sustain operating costs, truck manufacturing, and the development of hydrogen refueling stations.

Nikola's current situation appears dire, with the company reporting a net loss of $199.8 million in Q3 2024 and an overall deficit of $3.6 billion since its inception. The company has been trimming its workforce in an effort to "better align staffing" and improve its financial runway, as mentioned in a December 9 regulatory filing. Despite these efforts, Nikola's stock has seen volatile shifts, hitting a 52-week low before seeing a slight recovery.



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.

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, and its battery electric trucks have reached 1.5 million miles driven by customers. 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.

In conclusion, Nikola Corp. is facing a challenging financial situation, with rumors of bankruptcy circulating. The company is exploring various options to secure additional capital, including business partnerships, seeking additional capital, and potentially divesting parts of the company. Despite these efforts, Nikola's financial health remains uncertain, and the company's future prospects depend on its ability to execute its plans effectively and secure the necessary funding.