Nikola said on Wednesday that she had filed for the sales of the chapter 11 bankruptcy and chased her property, to stumble after struggling with Tipid demand, rapid cash burn and funding challenges to the latest electric vehicle manufacturer.
Development ends a challenging journey, including several leadership changes, plumating the share values and small-sellers allegations.
EV startups, which are public during the epidemic, promise to bring revolution in the field, such as Fisher, Protera and Lordstown Motors have filed for bankruptcy in recent years because their capital- due to high interest rates and flag bearers The funds have dried up for intensive operation.
After the trading started, Nicola’s market price reached $ 29 billion, but it had come down to $ 100 million before the filing. Nicola’s shares declined by 54% till 8 am on Wednesday before the regular trading in New York. In the last 12 months, the stock lost 97% of its value through Tuesday.
The company has been on a trip since it became public in 2020 through a deal with a special objective acquisition company, with an increase in its stock in the early days. Shortly thereafter, Bloomberg News reported that the founder Trevor Milton had abolished Nicola’s first truck capacity. The allegations in collaboration with the later short-seller campaign that targeted the company convicted Milton’s Oster and later on charges of cheating.
In recent years, the company has tolerated cash-proof issues, slow demand and executive business. Nicola also recalled her battery-electric trucks after a battery fire in 2023, temporarily motivated to prevent sales.
Steve Girski, the chief executive officer of Morgan Stanley analyst and General Motors Company, recently led an attempt to raise funds or find strategic options, Bloomberg said.
