In this article, shares of Nikola closed Thursday down 27.8% following a report that the troubled electric truck manufacturer is considering selling parts or all of the business. The stock ended Thursday at 85 cents per share, reaching a new 52-week low of 76 cents before the close of trading. Bloomberg News disclosed the potential sale on Thursday afternoon, mentioning other options being explored such as seeking partners and raising additional funds.
This report comes after Nikola’s warning to investors during its third-quarter conference call that the company had sufficient cash to sustain operations only until the first quarter of 2025. At the end of the third quarter, Nikola had $198 million in cash reserves. CEO Steve Girsky, a significant shareholder in the company, stated during the earnings call that they were actively engaging with various potential partners who appreciate their work and accomplishments.
Girsky, a former bank analyst and General Motors executive, led Nikola’s public listing through a special purpose acquisition company (SPAC) in June 2020, which spurred more electric vehicle companies to go public via SPACs. Like Nikola, many of these companies have not met their initial expectations, with several becoming subjects of federal investigations, scandals, and leadership changes.
Nikola did not immediately respond to CNBC’s request for comment regarding the Bloomberg report.
