The logo of Nikola in the United States was shown in the event of a collaboration to showcase CNH’s new all-electric and hydrogen fuel cell battery trucks in the United States on December 3, 2019 at the United States Nikola event in Italy.
Massimo Pinca | Reuters
Detroit – Nikola Company – A once most popular automotive startup that was Wall Street analysts and retail investors filed for bankruptcy protection after failing to acquire buyers or raising additional funds to maintain operations.
Nikola said Wednesday it plans to conduct the auction and sale process of its assets pending court approval. The company said it has about $47 million in cash to fund its bankruptcy activities, implement sales processes and exit Chapter 11.
Nikola CEO Steve Girsky, “Like other companies in the electric vehicle industry, we face a variety of market and macroeconomic factors that affect our ability to operate.” Said in the press release. “Unfortunately, our best efforts are not enough to overcome these significant challenges, and the Board determines that Chapter 11 represents the best way forward in the case of the company and its stakeholders.”
The proposed tendering process, if approved by the court, will allow interested persons to submit binding offers to acquire Nikola’s assets, purchase for free and avoid Nikola’s debts and certain liabilities.
The document marks the years-long end of the Phoenix-based company. Nicholas’ value exceeds that of the peak in 2020 Ford electric motor Ink in $30 billion Billions of dollars in deals and General Motors And considered the pinnacle of automotive startups, it can be disclosed through reverse mergers and special purpose acquisition companies.
Trevor Milton, founder of Nikola Corp., arrived in court in New York on Monday, September 12, 2022.
Victor J. Blue | Bloomberg | Getty Images
The company’s downfall has been happening for years, attracted by scandals and lies, involving its founder and former CEO and chairman Trevor Milton. The fast, energetic, shameful executive is Convicted of wire fraud and securities fraud In 2022, it was misled by investors about Nikola’s operations and zero-emission technology.
After the deal with GM, short seller research was first conducted by Detroit automakers and first by short ticket sellers in Fort Hinton The startup has a stake of $2 billion.
Nikola’s core product is the all-electric and fuel cell electric semi-racing car, which begins production in 2022. As of the third quarter of last year, the company has produced only 600 cars since then. Many of these vehicles have been recalled due to defects, costing automakers tens of millions of dollars.
Gilsky has kept Nikola moving forward since moving from chairman to CEO in 2023, including its production of zero-emission trucks, but the company’s capital has been declining.
Nikola warned investors on its third-quarter conference call that the company has only enough cash to support its business By the first quarter of 2025 But not beyond. Nikola reported $198 million in cash until the end of the third quarter.
Nicholas’ stock
Girsky said on an October call that Nikola was “conversing with many potentially different partners who value what we do and value what we build.”
Girsky is a former bank analyst and GM executive who passes his SPAC in June 2020. This is the catalyst that is being disclosed by more and more electric vehicle companies through gaskets.
Similar to Nicholas, most (if not all) Failed to meet their initial expectations. Many are at the center of federal investigations, scandals and administrative turmoil.
Nikola’s stock has traded below $2 per share since early December. Factset reported last year’s 1-30 reverse stock split, reporting that Nikola’s historical settlement price was nearly $80 in June 2020 history.
