Nikola declared bankruptcy, culminating a long decline for the once star of the electric cars industry, which dealt with weak sales and changed executive director following a fraud scandal. The company is studying the possibility of selling its assets after Get to chapter 11 in Delaware on Wednesday. In judicial documents, he listed a total funded debt and lease obligations for 98 million dollars.
Nikola’s actions fell 45% in New York. The action had already lost 97% of its value in the last 12 months until Tuesday. Nikola’s market value reached a maximum of 29,000 million dollars In the days after its start of price, but it had fallen to less than 100 million dollars. With his application, Nikola seeks authorization to initiate an auction and sale process, the company said in a statement.
The company said it intends to meet the Obligations with employees with 47 million of cash. For its part, Nikola plans to continue with a service and support operations for vehicles on roads, including certain HYLA supply operations until the end of March, subject to court approval.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” said CEO Steve Torsky in a statement. “The Board has determined that Chapter 11 (Request protection against creditors) represents the best possible path to follow under the circumstances for the company and its interested parties, “he explained.
“With the dedication of our employees and the support of our partners, Nikola has taken important measures to boost zero emissions, including the market introduction of the first electrical trucks of hydrogen fuel battery class 8 commercially available in America in America from the north and the development of the Hyla hydrogen refueling highway, which connects northern California with southern California, “said Gorsky.
“Our clients have accumulated approximately 3.3 million miles Fleet on our FCEV and BEV truck platforms and our HYLA fuel refueling network has distributed more than 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various macroeconomic and market factors that have affected our ability to operate, “says Torsky.
The manager adds that in recent months, they have taken numerous measures to raise capital, Reduce liabilities, clean up your balance and preserve cash to sustain your operations. “Unfortunately, our best efforts have not been enough to overcome these important challenges, and the Board has determined that chapter 11 represents the best possible path to follow in these circumstances for the company and its interested parties, “he said.
Nikola thus joins other US companies, such as fisker, who They have declared bankruptcy in recent years due to the difficulty of accessing the financing with the highest interest rates and a decrease in the demand for electric vehicles.
THE TESLA OF TRUCKS
In the middle of the rise of Tesla, this firm became its rival, presenting itself as the most promising alternative for another key segment such as trucks and electric transport. Aroused such a level of euphoria that in 2020, without having sold a single unit, He landed in the stock market with millionaire figures. Such was his support that came to capitalize to Ford briefly.
From the same name he already sent a message to the investors in which he linked his destination to the firm founded by Musk. Both pay tribute to Nikola Tesla, the inventor that design the modern alternating current electricity system. In this way, it was raised as the second leg of an entire revolution for the industry. While Tesla seemed to assault the reign of the cars of families and users, Nikola It seemed called to dominate the buoyant truck and transport market.
But the truth is that the coexistence of both was a path loaded with hatred, misgivings and complaints. Beyond the name of both accused the other of ‘inspired’ in their technology. Nikola demanded in 2018 2,000 million dollars for patent infractions In Tesla’s truck proposal, the Semi. In that moment of hopes and dreams everything seemed built for its promotion, such is that General Motor came to buy 11% of the firm for 2,000 million dollars to start a total purchase.
However, Nikola’s nightmare began in 2020 when its CEO and founder, Trevor Milton, resigned before a report by Hindemburg Research of accounting fraud. After this General Motors undo positions and began a path of suffering for the firm. The crisis of trust became internal and its models failed to land successfully in the market.
A Festival of Executive Directors were taking the wheel of the truck firm but the collapse ended up taking place in the last year and a half, with a crisis in the sector. As the demand weakened for China’s doubts, the costs rose, interest rates they hindered financing and ultrabarate models From China they condemned the sector to a price war, Nikola found a context too difficult to survive.
At this point of pain for the entire sector the company found that SOlo had sold about 200 units of its hydrogen semi -trailers in 2024. In that same presentation of results confirmed that with the available liquidity, expenses and scarce sales would only have sufficient effective to continue operating until the first quarter. Then he sought strategic alliances, mergers or any solution to continue operating. But he has not managed to land any, so bankruptcy has been the only way out.
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