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KEY TAKEAWAYS
- Shares of Nikola are tumbling around 33% in early trading Friday on a report by The Wall Street Journal that the electric truck maker is nearing a bankruptcy filing.
- According to The Wall Street Journal, which cited people familiar with the matter, the hydrogen-truck maker has been working with its law firm Pillsbury Winthrop Shaw Pittman to look into options that include sale or restructuring of the company in bankruptcy.
- Nikola’s founder was convicted of fraud, and sentenced to four years in prison in December 2023.
Shares of Nikola (NKLA) are tumbling around 33% in early trading Friday on a report that the electric truck maker is nearing a bankruptcy filing.
According to The Wall Street Journal, which cited people familiar with the matter, the hydrogen-truck maker has been working with its law firm Pillsbury Winthrop Shaw Pittman to look into options that include the sale or restructuring of the company in bankruptcy.
Nikola and Pillsbury Winthrop Shaw Pittman didn’t immediately respond to requests for comment.
The startup has had a dramatic few years since it went public in June 2020 before selling any trucks— including a mass recall in 2023 of its vehicles. Its founder, Trevor Milton, was convicted of fraud, and sentenced to four years in prison in December 2023 for misleading investors, according to an earlier report by The Wall Street Journal .
Bloomberg reported in January that Nikola was looking into options to prevent a cash crunch, including selling the whole company.
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