Nikola Corporation, an American company specialising in the production of battery and hydrogen-powered electric trucks, finds itself at a critical crossroads. Faced with a tightening liquidity crisis, the company is exploring various options, including a partial or total sale of the business, as well as seeking new strategic collaborators and fresh capital. This was reported on 23 January 2025 by Bloomberg, citing sources close to the company and describing the situation as a new chapter in a troubled history marked by financial struggles, legal disputes, and disappointing performance in the stock market.
Founded with the ambition of revolutionising the heavy transport sector through low-emission technologies, Nikola initially generated significant interest from investors and industry operators. However, a series of internal and external challenges have hindered its ambitions. Among these challenges are the departure of its founder Trevor Milton, who was embroiled in a fraud scandal involving investors, and a decline in demand within the electric vehicle market.
The company was one of the first startups to enter the field of battery and hydrogen-powered electric trucks, promising a sustainable alternative to traditional diesel vehicles. However, its ability to turn these promises into tangible results has been hindered by technological and financial issues. In 2023, for instance, Nikola had to recall all 209 electric trucks it had sold due to a defect in battery packs that caused fires, an incident that temporarily halted sales.
Bloomberg further reports that CEO Steve Girsky, a key figure in managing the current crisis, is leading efforts to find strategic solutions. A former executive at General Motors and analyst at Morgan Stanley, Girsky has been working to attract new investors and stabilise the company’s position. During an October conference call, he confirmed that Nikola is "in active discussions with many potential partners who value what we’ve built." Despite these efforts, the company admitted that its available financial resources only cover obligations until the first quarter of 2025.
Even cost-cutting measures, such as layoffs and downsizing operations, have not been enough to reverse the downward trend. The market has so far responded with scepticism to Nikola’s restructuring and recovery plan: the company’s stock value has plummeted by 95% over the past 12 months, and in December 2024, Nikola filed a request to sell up to $100 million in shares in an effort to boost liquidity. Nikola is also working on revamping its range of electric industrial vehicles, focusing on hydrogen fuel cell models, which have been less affected by the issues seen in battery-powered designs. However, technological and logistical challenges continue to pose significant hurdles.
