Nikola, the hydrogen-powered freight truck maker, is facing financial challenges that may lead to a bankruptcy filing. According to reports from The Wall Street Journal and Bloomberg, the US-based company is exploring options for financial restructuring, including a potential Chapter 11 filing to protect itself from creditors during a cash crunch.
The company is working with legal and financial advisors to evaluate various strategies, such as a sale or reorganization within bankruptcy proceedings. While the plans are not final and could change, Nikola is actively seeking ways to secure financing as part of its restructuring efforts.
This development comes as Nikola struggles with fundraising and a reduced cash balance due to substantial losses on every unit sold. The company has acknowledged the need for restructuring to address these financial challenges.
Previously, there were reports that Nikola was considering selling parts of its business or the entire company to stay afloat. However, in late last month, the company stated that it was working tirelessly to secure capital and avoid a sale.
In October 2024, Nikola reported sales of 88 hydrogen-powered Class 8 electric trucks in the third quarter, in line with its forecast of 80 to 100 fuel cell units. Since the truck’s market launch in the previous year, Nikola has wholesaled a total of 200 hydrogen fuel cell trucks, with 235 units sold in the first three quarters of 2024.
The company’s future remains uncertain as it navigates these financial challenges and explores restructuring options. Stay tuned for updates on Nikola’s efforts to secure funding and stabilize its operations in the increasingly competitive electric truck market.
