US Nikola’s logo appears at an event where CNH partners with US Nikola Events to showcase new all-electric and hydrogen fuel cell trucks on December 3, 2019 in Turin, Italy.
Massimo Pinca | Reuters
Detroit — Stocks Nikola Shares closed down 27.8% on Thursday after reports that the struggling electric truck maker was exploring options to sell part or all of its business.
The stock closed at 85 cents a share on Thursday and hit a 52-week low of 76 cents before the end of trading.
Bloomberg News report of a potential sale Thursday afternoon, noting that other possibilities being considered include bringing in partners and raising new capital.
Three months ago, Nikola warned investors on its third-quarter conference call that it only had enough cash to support its business through the first quarter of 2025, but not beyond that. Nikola reported $198 million in cash at the end of the third quarter.
Nikola shares plummeted.
Chief Executive Officer Steve Girsky, a major Nikola shareholder, said on the earnings call that the company is “actively talking to a number of potential different partners who value what we do. and what we’ve built.”
Girsky, former bank analyst General Motors In June 2020, Nikola went public through his special purpose acquisition company (SPAC). This serves as a catalyst for more electric vehicle companies to go public through SPACs.
Very similar to Nikola, most if not all have failed to live up to their initial expectations. Many, including Nikolai, were at the center of federal investigations, scandals and administrative turmoil.
Nikola did not immediately respond to CNBC’s request for comment. Bloomberg reports.
