Nikola slumps after filing for bankruptcy protection

Nikola

19/02/2025 13:34

** Shares of electric truck maker Nikola  NKLA.O  fall 46.8%
to 40 cents premarket
    ** Co files for Chapter 11 bankruptcy protection and will
sell most of its assets due to financial struggles
    ** Will continue some operations until the end of March,
including truck maintenance and hydrogen-fueling services - NKLA
    ** Other electric vehicle companies, like Fisker, Proterra,
and Lordstown Motors, have also filed for bankruptcy in recent
years due to high interest rates and low demand
    ** "Like other companies in the electric vehicle industry,
we have faced various market and macroeconomic factors that have
impacted our ability to operate" - CEO Steve Girsky
    ** NKLA has assets valued between $500 mln and $1 bln, but
liabilities estimated between $1 bln and $10 bln - court filing
    ** NKLA shares fell ~95% in 2024

 (Reporting by Kamal Choudhury in Bengaluru)
 ((Kamal.Choudhury@thomsonreuters.com;))