Written by Cláudio Afonso | LinkedIn | X
Shares of the hydrogen and fully electric truck maker Nikola plunged 47% on Thursday’s after-market session following a Wall Street Journal’s report claiming the company “is nearing a bankruptcy filing.”
After having closed 4% lower, the stock plunged 47% immediately after the report to a new record low before recovering part of its losses as of Friday’s early morning.
Earlier this week, Nikola‘s founder and former CEO Trevor Milton said the management “has done everything they can to destroy the company” adding that “they should be held accountable.”
Citing people familiar with the matter, WSJ said Nikola has been working with its law firm Pillsbury Winthrop Shaw Pittman “to explore options that could include a sale or restructuring of the company in bankruptcy.”
The Phoenix-based startup started considering a potential sale, partnerships, or raising additional capital last month. Nikola has not yet reported its sales figures from the last quarter of 2024.
Additionally, the company claimed earlier this week it had fixed 111 of the 209 battery-electric trucks recalled in August 2023 due to a battery fire risk.
However, the figures reported to the U.S. National Highway Traffic Safety Administration (NHTSA) do not match the company’s claims on social media.
According to NHTSA regulations, specifically 49 CFR § 573.7(b)(4), manufacturers are required to submit quarterly reports that cumulatively detail the number of vehicles that have been fixed. Based on that, Nikola has fixed only 40 trucks out of 209 recalled — over 500 days after the recall took place.
Last October, the company’s chief financial officer Tom Okray stated that the company had a cash runway of “five to six months,” with a monthly burn rate of $30 million to $40 million.
The company saw two executives — both global heads of manufacturing quality — leaving the EV maker. The departures followed the exit of Nikola’s country chief for Canada, Jorg Wimbert.
In mid November, the company announced a recall of 72 of its 2022-2023 battery electric (BEV) trucks due to a defect in the instrument cluster display.
