Nikola, an embattled electric vehicle truck manufacturer, is in Kaput. The company just announced and plans to sell assets. The assets will be sold at auction, awaiting court approval. Nikola noted that it has $47 million in cash to fund bankruptcy proceedings and start the sales process. The company reported assets between $500 million and $1 billion, but its liabilities totaled $1 billion to $10 billion. .
“Like other companies in the electric vehicle industry, we are facing a variety of market and macroeconomic factors that affect our operational capabilities,” said Steve Girsky, president and CEO of Nikola.
These market and macroeconomic factors are real because electric vehicle adoption growth rates . However, Nicholas is a special case. The company has been involved in many scandals in recent years, so the news stands out from Grace because it was once a clumsy electric car maker.
Founded in 2015, Nikola is tasked with manufacturing zero-emission heavy trucks. The company formed a profitable partnership with General Motors in 2020, but it will collapse soon thereafter. yes thanks to a report from short selling company Hindenburg Research. The report even includes a video showing a Nikola truck rolling on the hill to simulate driving.
Our survey of the site and text messages from former employees showed that the video was a well-crafted ruse – $ nkla The truck was towed onto a distant road on the hillside and then shot it. pic.twitter.com/n2nldginzr
– Hindenburgres Research (@hindenburgres) September 10, 2020
This “well-designed trick” led the SEC to start an investigation, leading to founder Trevor Milton . Later, he was arrested. . Milton is and . company . Needless to say .
The company did make it public in 2020 . However, the report shows that Nikola is On every truck sold. All in all, the company only produces about 600 cars Due to multiple shortcomings.
This sub-par performance has put the stock in a crater, from a high price of up to $1,000 per share to $0.47 per share. I think there is only one company Permitted consistently No dents were made to its valuation.
