Nikola, a developer of hydrogen fuel-cell and battery-electric vans that was as soon as among the many most hyped automotive startups, filed Chapter 11 chapter safety in Delaware on Wednesday.
The startup automaker filed a movement looking for an authorization to pursue the public sale and sale of its property. At present, the corporate filed motions to make sure will probably be capable of proceed restricted operations to make sure the sale course of and non-dealer service and assist of vans within the discipline.
Getting into Chapter 11, Nikola mentioned it had roughly $47 million in money available to fund present operations.
In 2020, when it went public through a then-fashionable reverse merger with a particular goal acquisition firm (SPAC), Nikola was price round $30 billion, in line with the report. However MSN reported just lately that Nikola’s inventory worth has tanked, bringing the corporate’s worth right down to $74 million.
In its most up-to-date SEC submitting, in December, Nikola indicated that it was working low on money and would solely have the funds for to proceed working by the primary quarter of this 12 months. The corporate has sought extra funding in current months, and performed two rounds of layoffs in October and December of final 12 months. Nikola is but to introduced its This autumn 2024 monetary outcomes, however within the December submitting, it reported a internet lack of $481.2 million within the first 9 months of that 12 months.
Nikola Tre electrical semi vans delivering Nissan autos within the Los Angeles space
Earlier in Feburary, Nikola introduced that it was promoting its battery property to Mullen Automotive for an undisclosed quantity. That comes roughly a month after Nikola’s introduced that its battery-electric vans had lined 1 million miles in service with prospects. The property had been probably inherited from battery maker Romeo Energy, which Nikola acquired in September 2023 for round $3.5 million.
Nikola began out not with hydrogen however with a natural-gas turbine, producing electrical energy to energy its semi, with an enormous 320-kwh battery pack. However by late 2016, it had shifted to hydrogen gasoline cells whereas persevering with to emphasise semi vans.
Plans additionally included a fuel-cell pickup, referred to as the Badger, which it turned out by no means existed to the extent that CEO Trevor Milton had prompt—and would have relied on GM to a level it by no means truly agreed. In 2020, across the time that the Badger was hyped, Nikola was valued by Wall Road larger than GM. Nikola even teased an ATV round this time.
Nikola Badger
Nikola continued to name itself a BEV and fuel-cell chief, earlier than it truly delivered any vans, as its inventory continued to soar. All of it got here tumbling down in July 2021, when Milton was charged with securities fraud. That was after Milton left Nikola in response to a report by activist short-seller Hindenburg Analysis alleging that Milton had misled traders in a spread of how, together with that prototypes had been transferring with Nikola’s personal propulsion techniques.
Nikola has gone on to ship merchandise at a extra modest scale and ambition, as a part of an try to rebuild and as an alternative give attention to medium-duty vans after Milton. Though within the interim it is fallen behind in addressing a battery recall that took lots of its first-generation vans out of service.