The logo of Nikola in the United States was shown in the event of a collaboration to showcase CNH’s new all-electric and hydrogen fuel cell battery trucks in the United States on December 3, 2019 at the United States Nikola event in Italy.
Massimo Pinca | Reuters
Detroit - Nikola Company - A once most popular automotive startup that was Wall Street analysts and retail investors filed for bankruptcy protection after failing to acquire buyers or raising additional funds to maintain operations.
The document marks the years-long end of the Phoenix-based company. Nicholas’ value exceeds that of the peak in 2020 Ford electric motor Billion dollar deals reached on $30 billion General Motors And considered the pinnacle of automotive startups, it can be disclosed through reverse mergers and special purpose acquisition companies.
The company's downfall has been happening for years, attracted by scandals and lies, involving its founder and former CEO and chairman Trevor Milton. The fast, dynamic, shameful executive was convicted of wire fraud and securities fraud for misleading investors for Nikola's operations and zero-emission technology.
Trevor Milton, founder of Nikola Corp., arrived in court in New York on Monday, September 12, 2022.
Victor J. Blue | Bloomberg | Getty Images
After the deal with General Motors, short seller Hinden Research first made a public controversy, including a stake in the Detroit automaker's $2 billion startup.
Nikola’s core product is the all-electric and fuel cell electric semi-racing car, which begins production in 2022. As of the third quarter of last year, the company has produced only 600 cars since then. Many of these vehicles have been recalled due to defects, costing automakers tens of millions of dollars.
Steve Girsky has kept Nikola forward since moving from chairman to CEO in 2023, including its production of zero-emission trucks, but the company's capital has been gradually reduce.
Nikola warned investors on its third-quarter call that the company had only enough cash to support its business through the first quarter of 2025, but not surpassing it. Nikola reported $198 million in cash until the end of the third quarter.
Nicholas' stock
Girsky said on an October call that Nikola was “conversing with many potentially different partners who value what we do and value what we build”.
Girsky, a former bank analyst and GM executive, made public through its SPAC in June 2020. This is the catalyst that more EV companies have disclosed through SPAC.
Similar to Nicholas, most, if not all, did not meet their initial expectations. Many are at the center of federal investigations, scandals and administrative turmoil.
Nikola's stock has traded below $2 per share since early December. Factset reported last year’s 1-30 reverse stock split, reporting that Nikola’s historical settlement price was nearly $80 in history in June 2020.