(Reuters) – The manufacturer of electric trucks Nikola is approaching bankruptcy, the Wall Street Journal reported Thursday, citing people familiar with the issue.
The actions of the company fell 20% to 60 cents of prolonged negotiation.
Nikola, based in Phoenix, Arizona, worked with Pillsbury Winthrop Shaw Pittman pillsbury law firm to explore options, including a sale or restructuring of the bankruptcy, according to the report.
The company is struggling to collect funds and its cash balance has decreased while it continues to lose hundreds of thousands of dollars for each unit sold.
Nikola said Thursday that he was asking a variety of options, including funding as part of financial restructuring.
However, the company refused to comment whether it explored bankruptcy procedures.
Pillsbury Winthrop Shaw Pittman did not immediately respond to a request for comments from Reuters.
The electric truck manufacturer explored options, including selling parts from his business or the whole company, Bloomberg News reported last month.
Nikola cash and cash equivalents fell sharply at $ 198.3 million in late September, compared to $ 464.7 million at the end of 2023.
Its shares have lost more than 99% of their value since its appearance in 2020.
The action fell below the mark of $ 1 several times and the company used several inverted stock divisions to comply with the registration rules of the NASDAQ.
(Report by Akash Sriram in Bengaluru; edition by Shilpi Majumdar and Shounak dasgupta)
