Electric Truck Maker Nikola Explores Sale as Cash Dwindles

Nikola Corp. is currently seeking solutions to avoid a cash shortage, which may include selling parts or the entire company, as well as securing partners or raising new funds. No final decisions have been made yet. The company emphasizes its ongoing efforts to raise capital and manage its liabilities, despite challenges facing the electric vehicle sector. Nikola, known for its electric and hydrogen-powered semi-trucks, has faced a tumultuous path since going public in 2020, marked by the resignation and conviction of founder Trevor Milton for fraud, multiple CEO changes, and declining stock prices—down 95% in the past year. CEO Steve Girsky, who previously worked at Morgan Stanley and General Motors, has led efforts to secure funding or explore alternatives. Nikola’s financial situation worsened after recalling all 209 of its battery-electric trucks due to safety concerns, while production of hydrogen-electric trucks continues. Moreover, the company previously announced plans to sell up to $100 million in stock, indicating ongoing attempts to shore up financial stability. In terms of transportation industry insights, the situation at Nikola exemplifies the volatility and challenges inherent in the EV market, particularly for companies transitioning from traditional to new energy technologies. With heightened scrutiny on electric vehicle safety and reliability, firms must prioritize transparent communication and robust product development to maintain investor and consumer trust. Adapting to regulatory changes and technological advancements will be crucial for Nikola and similar companies navigating the evolving landscape of sustainable transportation.