Factbox: US EV startups under spotlight as Nikola files for bankruptcy

Arrival SA

19/02/2025 15:43

(Updates with latest developments, changes dateline)
       Feb 19 (Reuters) - 
    Nikola filed for 
    bankruptcy protection
     on Wednesday, the latest electric vehicle firm to shut
operations after grappling with tepid demand, rapid cash burn
and funding challenges.
  
        The move ends a challenging journey for the electric
truck maker which included several leadership changes, sinking
share value and short-seller allegations.   
  
        Here is a look at how EV startups have been faring in
the face of high interest rates and inflation, pushing them to
seek fresh capital to continue operations. 
  
        
  
        
    NIKOLA  NKLA.O  
    Nikola is the latest EV maker to file for bankruptcy, after
a tumultuous journey in a highly competitive industry, wrought
with numerous vehicle issues and weak demand. 
        Nikola said it decided to initiate a sale process of its
assets to maximize value and ensure an orderly wind down.
  
        The firm will continue some operations for trucks in the
field and some hydrogen-fueling operations through the end of
March.
  
                
  
        FISKER  
  
        Fisker 
    filed for bankruptcy
     last year after experiencing weak demand for its Ocean SUVs
and facing competition from large players such as Tesla
 TSLA.O .
    The collapse of its talks with an automaker - which Reuters
had reported to be Nissan  7201.T  - meant that it was denied
$350 million in funding from an unnamed investor that was
contingent on the automaker's investment and forced Fisker to
explore options.
    In its Chapter 11 bankruptcy filing in Delaware, Fisker's
operating unit, Fisker Group Inc, estimated assets of $500
million to $1 billion and liabilities of $100 million to $500
million.
        
  
        RIVIAN AUTOMOTIVE  RIVN.O  
    Rivian is seen to be better placed than its rivals, thanks
in part to a joint venture with German automaker Volkswagen
Group  VOWG_p.DE , which in November raised its funding amount
to $5.8 billion to develop electric vehicles and architecture. 
        
        LORDSTOWN MOTORS 
  
        Lordstown Motors 
    filed for bankruptcy protection
     in 2023 and put itself up for sale after failing to resolve
a dispute over a promised investment from Taiwan's Foxconn
 2354.TW .
    In the complaint, Lordstown accused Foxconn of fraudulent
conduct and a series of broken promises in failing to abide by
an agreement to invest up to $170 million in the
electric-vehicle manufacturer.
            
  
        LUCID GROUP  LCID.O  
    Lucid Group said in October it expects to raise $1.67
billion from a stock sale as it looks to ramp up production of
its new Gravity SUV. 
        The company is backed by Saudi Arabia's Public
Investment Fund, its largest shareholder, which also committed 
    $1.5 billion
     in cash in August last year.  
  
        
  
        CANOO
  
        Canoo said it 
    filed for bankruptcy
     under Chapter 7 last month, ceasing operations effective
immediately.
  
        The EV startup faced financial challenges and struggled
to raise additional funding from the U.S. Department of Energy's
Loan Programs Office amid uncertain demand for its
microbus-inspired cargo vans.
  
        
  
        PROTERRA
  
        Proterra filed for 
    Chapter 11 bankruptcy
     protection in 2023 due to slowing demand and financial
challenges.
  
        The company, which made electric buses as well as
battery systems, went public in 2021 through a merger with a
blank-check firm that valued it at $1.6 billion, including debt.
  

 (Reporting by Zaheer Kachwala, Priyanka.G and Akash Sriram in
Bengaluru, and Abhirup Roy in San Francisco; Editing by Sriraj
Kalluvila, Sayantani Ghosh and Maju Samuel)
 ((Priyanka.G@thomsonreuters.com;))