Nikola(US:NKLA) New York Post·2025-02-19 15:59Core Viewpoint - Nikola, once valued at $30 billion, has filed for bankruptcy, seeking an auction and sale process for its assets due to challenges such as low demand, high cash burn, and funding issues [1][3]. Company Overview - Nikola's CEO, Steve Girsky, acknowledged that the company has faced various market and macroeconomic factors affecting its operations [2]. - The company attempted to raise capital, reduce liabilities, and improve its balance sheet but ultimately determined that Chapter 11 bankruptcy was the best option [3]. Financial Performance - Nikola's stock plummeted 40% on the day of the bankruptcy filing, reflecting investor sentiment [3]. - The company has warned investors that it only has enough cash to operate through the first quarter of 2025 [9]. - Over the past year, Nikola's stock has declined more than 95%, trading at less than $2 per share since December [9]. Production and Product Issues - Since starting production in 2022, Nikola has only manufactured 600 electric semitrucks as of the third quarter of last year [7]. - In 2023, the company recalled over 200 vehicles due to a battery leak that caused a fire in a parked truck [7]. Historical Context - At its peak in 2020, Nikola was valued higher than Ford and had a significant partnership with General Motors, which invested $2 billion for an 11% stake [4][6]. - The company faced severe reputational damage after its founder, Trevor Milton, was sentenced to four years in prison for defrauding investors [5][8].