The US manufacturer of electric and hydrogen trucks, Nikola Corporation, is facing significant challenges. According to media reports, the company is now exploring several plans — including the sale of parts of the company or even the entire business. As Bloomberg reports from insider sources, new partnerships could also be formed to address its financial difficulties.
Current developments and price decline
After the report was published, Nikola shares fell by 28 per cent, reaching a historic low of $0.84 on January 23. By 2024, the stock had already lost over 90 percent of its value.
With a share price of less than one dollar, the company now faces delisting from the Nasdaq. This would further erode investor confidence.
Founded in 2014, Nikola specialises in manufacturing battery-electric and hydrogen-powered trucks but has faced numerous problems in recent years. Founder and then-CEO Trevor Milton resigned in 2020 after being accused of defrauding and misleading investors.
In Europe, Nikola had initially planned to sell its vehicles as part of a joint venture with Iveco. However, in 2023, Iveco took over the joint venture entirely, cutting Nikola off from an important partner.
In the same year, the company made headlines in the US when it had to recall over 200 Nikola Tre electric trucks due to a potential fire hazard.
Financial constraints and challenges
According to Bloomberg, Nikola is not only struggling with issues related to the trucks it has already manufactured but is also facing high costs as it works to ramp up production of its fuel cell electric trucks. Liquid assets are diminishing at an alarming rate, putting the company in a precarious financial position.
Through a sale or merger with a financially strong partner, Nikola could potentially stabilise its position and accelerate the development and production of its vehicles. It remains to be seen what strategic decisions the company will make and how these will affect the future of Nikola and the market for electric commercial vehicles.