Scandal-scarred electric semi-truck maker Nicola (a pandemic darling once valued at $30 billion) filed for bankruptcy on Wednesday.
The company said it would become the latest electric vehicle manufacturer to stumble after tackling slimy demand, rapid cash burning and financing challenges, as it demands an asset auction and sales process.
“Like other companies in the electric vehicle industry, we face a variety of markets and macroeconomic factors that have influenced our sales capabilities,” CEO Steve Girsky said in a statement. Ta.
He said Nicola tried to raise capital, reduce debt and clean up the balance sheet, but “Unfortunately, our best efforts will help overcome these important challenges.” It wasn’t enough.”
Nicola shares plummeted 40% on Wednesday morning.
High costs and lack of charging infrastructure have caused electric vehicle sales to sway in the US.
But the bankruptcy filing is a particularly sudden fall for Nicola, who was recognized for more than the industry’s giant Ford at its peak in 2020.
General Motors agreed to acquire an 11% stake in the EV maker for $2 billion in 2020.
But the following year, the trendy automaker agreed to pay a whopping $125 million to the Securities and Exchange Commission to resolve allegations that misunderstood the investors.
The charges were targeted at Trevor Milton, the company’s founder and former CEO. The SEC claimed that Milton shared a video showing Nicola Truck rolling down the hill with investors.
In December 2023, Milton was sentenced to four years in prison for deceiving investors.
The fraud accusations were first published by short-seller Hindenburg’s research. This has recently accused Calvana of being “accounting glyfts for father and son of age.”
GM has significantly expanded its partnership with Nicola one month after it announced its 11% stake, following a furious report from Hindenburg.
Nicola began production of electric semitrunks in 2022, but since then the company has only produced 600 vehicles as of the third quarter of last year.
In 2023, the fighting carmakers recalled more than 200 of these vehicles after investigations revealed that a fire would likely occur in trucks parked with leaky batteries.
Nicola continues to produce zero-emission trucks under Girsky, who served as CEO in 2023.
However, the company warned investors last year that they only had enough cash to float through the first quarter of 2025.
During the October call, Girsky said the automakers are “actively talking with many potential different partners who value what we’re doing and value what we’ve built.” I stated.
Stocks have plummeted more than 95% in the past 12 months, trading at less than $2 per share since December.
