Electric-truck maker Nikola is reportedly nearing a bankruptcy filing, according to sources cited by the Wall Street Journal. The Arizona-based company has been working with law firm Pillsbury Winthrop Shaw Pittman to explore options, including a potential sale or restructuring through bankruptcy.
Nikola has faced ongoing financial difficulties, struggling to raise funds while losing significant amounts per vehicle sold. The company acknowledged it is evaluating various options, including securing financing as part of a broader financial restructuring, but declined to confirm whether bankruptcy proceedings are under consideration.
The company’s cash reserves dropped sharply to $198.3 million at the end of September, down from $464.7 million at the close of 2023.
Its stock has lost over 99% of its value since going public in 2020 and has repeatedly fallen below $1 per share, prompting multiple reverse stock splits to maintain Nasdaq listing compliance. Shares dropped 20% to $0.60 in after-hours trading following the report.
