Chapter nears for Nikola, former hydrogen-hype darling

Nikola, a developer of hydrogen fuel-cell and battery-electric vans that was as soon as among the many most hyped automotive startups, is now contemplating submitting for chapter, the Wall Avenue Journal reported Thursday, citing nameless sources acquainted with the matter.

In 2020, when it went public through a then-fashionable reverse merger with a particular goal acquisition firm (SPAC), Nikola was price round $30 billion, in keeping with the report. However MSN reported just lately that Nikola’s inventory value has tanked, bringing the corporate’s worth all the way down to $74 million.

In its most up-to-date SEC submitting, in December, Nikola indicated that it was working low on money and would solely have the funds for to proceed working via the primary quarter of this yr. The corporate has sought extra funding in current months, and carried out two rounds of layoffs in October and December of final yr. Nikola is but to introduced its This fall 2024 monetary outcomes, however within the December submitting, it reported a internet lack of $481.2 million within the first 9 months of that yr.

Final Thursday, Nikola introduced that it was promoting its battery belongings to Mullen Automotive for an undisclosed quantity. That comes roughly a month after Nikola’s introduced that its battery-electric vans had lined a million miles in service with prospects. The belongings have been seemingly inherited from battery maker Romeo Energy, which Nikola acquired in September 2023 for round $3.5 million.

Nikola began out not with hydrogen however with a natural-gas turbine, producing electrical energy to energy its semi, with an enormous 320-kwh battery pack. However by late 2016, it had shifted to hydrogen gasoline cells whereas persevering with to emphasise semi vans.

Plans additionally included a fuel-cell pickup, known as the Badger, which it turned out by no means existed to the extent that CEO Trevor Milton had instructed—and would have relied on GM to a level it by no means truly agreed. In 2020, across the time that the Badger was hyped, Nikola was valued by Wall Avenue greater than GM. Nikola even teased an ATV round this time.

Nikola Badger

Nikola continued to name itself a BEV and fuel-cell chief, earlier than it truly delivered any vans, as its inventory continued to soar. All of it got here tumbling down in July 2021, when Milton was charged with securities fraud. That was after Milton left Nikola in response to a report by activist short-seller Hindenburg Analysis alleging that Milton had misled buyers in a spread of the way, together with that prototypes have been shifting with Nikola’s personal propulsion programs.

Nikola has gone on to ship merchandise at a extra modest scale and ambition, as a part of an try to rebuild and as an alternative give attention to medium-duty vans after Milton. Though within the interim it is fallen behind in addressing a battery recall that took lots of its first-generation vans out of service.