Nikola information Chapter 11 chapter; former hydrogen-hype darling seeks sale

Nikola, a developer of hydrogen fuel-cell and battery-electric vans that was as soon as among the many most hyped automotive startups, filed Chapter 11 chapter safety in Delaware on Wednesday.

The startup automaker filed a movement searching for an authorization to pursue the public sale and sale of its belongings. At present, the corporate filed motions to make sure will probably be in a position to proceed restricted operations to make sure the sale course of and non-dealer service and help of vans within the discipline.

Coming into Chapter 11, Nikola stated it had roughly $47 million in money readily available to fund present operations.

In 2020, when it went public through a then-fashionable reverse merger with a particular objective acquisition firm (SPAC), Nikola was price round $30 billion, based on the report. However MSN reported just lately that Nikola’s inventory worth has tanked, bringing the corporate’s worth right 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 find the money for to proceed working via the primary quarter of this 12 months. The corporate has sought extra funding in latest months, and performed two rounds of layoffs in October and December of final 12 months. 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 12 months.

Earlier in Feburary, 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 1 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, referred to as the Badger, which it turned out by no means existed to the extent that CEO Trevor Milton had steered—and would have relied on GM to a level it by no means really agreed. In 2020, across the time that the Badger was hyped, Nikola was valued by Wall Road 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 really 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 variety of the way, together with that prototypes have been transferring with Nikola’s personal propulsion techniques.

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