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Electric truck maker Nikola Corp. filed for Chapter 11 Bankruptcy Protection on Wednesday after the company failed to overcome its market and macroeconomic challenges.
“Like other companies in the electric vehicle industry, we face a variety of markets and macroeconomic factors that have influenced our operating capabilities,” CEO Steve Girsky said in a statement.
Girsky said the company has taken “many actions” to raise capital, reduce debt, cut its balance sheet, preserve cash and maintain operation in recent months. As I said, it was not enough to overcome the “important challenges” that the company faced. He said that bankruptcy protection filings are “the best possible path” for the company and its stakeholders.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| NKLA | Nikola Corp. | 0.77 | +0.22 |
+41.44% |
As of Wednesday, Nicola has about $47 million in cash to keep things running while she is trying to sell and restructure her assets. The company is also seeking court approval to sell the assets quickly to ensure they have enough money to cover the costs during the bankruptcy process.
This is a developing story. Please check for updates.
