A spokesperson for the company acknowledged that they are assessing numerous strategies, including securing new financing as part of a restructuring plan. This aligns with earlier reports by the Wall Street Journal regarding possible bankruptcy considerations.

Since going public in 2020 via a merger with a special purpose acquisition company, Nikola experienced significant highs and lows. Initially, it caught the attention of retail investors, leading to a sharp increase in stock value. However, difficulties emerged, leading to several leadership changes post the departure of founder Trevor Milton, who was later found guilty of misleading investors with inflated claims about the company’s technological capabilities.

Part of Nikola’s financial woes are linked to its electric semi-trucks, which faced setbacks due to engine fires in 2023, prompting a recall and stalling sales. The company has also struggled with sluggish sales performance, having sold only around 200 hydrogen-electric trucks by the first three quarters of 2024. In October, Nikola announced that it could meet its financial commitments only through the first quarter of the following year.

CEO Steve Girsky has assured investors that the company is actively engaging with potential partners who value its innovations and contributions to the industry. To improve its cash position, Nikola has undertaken several cost-cutting measures, including multiple rounds of layoffs, and in December, it registered to sell up to $100 million in stock.