Making and selling electric vehicles is not easy.
From MarketWatch, February 19:
Nikola to pursue an auction and sale of its assets, and will continue ‘limited operations’ during the sale process
Nikola Corp. became the latest EV maker to go bankrupt on Wednesday, as the Phoenix-based battery-electric and fuel-cell-electric truck maker voluntarily filed for Chapter 11.
The company said it has also filed to pursue an auction and sale process, and to ensure its “limited operations” can continue, including paying its employees, during the sale process.
Nikola’s stock plunged 49.1% in premarket trading toward a record low. The selloff comes a day after it had soared 41.4%, to have its best day since July 13, 2023.
Among other EV makers, Tesla Inc.’s stock rose 0.1% ahead of the open, Rivian Automotive Inc.’s stock slipped 0.3% and Mullen Automotive Inc. shares
“In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations,” said Chief Executive Steve Girsky. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the board has determined that Chapter 11 represents the best possible path forward under the circumstances for the company and its stakeholders.”The company’s bankruptcy comes after Fisker went bankrupt in 2024 and Lordstown Motors filed for bankruptcy in 2023....
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