What's Going On With Nikola Stock On Thursday?

Nikola Corporation NKLA shares are trading lower on Thursday, after a report suggesting that bankruptcy may be imminent. According to Benzinga Pro, NKLA stock has lost over 94% in the past year.

In a post on X, formerly Twitter, Fred Lambert, the Editor-in-Chief and one of the founding members of Electrek, highlighted that more employees are being let go, and the company has been silent for weeks failing to file production and delivery numbers.

Lambert posted, “A source (a new source can’t confirm but has some credibility) says Nikola CEO Stephen Girsky is out, and the bankruptcy filing is already in the hands of lawyers.”

A flyover of Nikola’s factory revealed over a hundred trucks sitting idle without batteries, painting a grim picture for the company’s future, Lambert writes in his post.

Nikola’s troubles began back in 2020 when short-seller Hindenburg accused it of fraud, and the situation worsened after the conviction of former CEO Trevor Milton for lying about the company.

Hindenburg published a report labeling the electric car maker as an “intricate fraud.” Hindenburg specifically pointed out a video released by Nikola titled “Nikola One in Motion,” alleging that the truck was towed to the top of a hill and released instead of being driven at high speed. 

Also Read: Hindenburg Research Is Closing Up Shop: ‘We Shook Some Empires That We Felt Needed Shaking’

In December 2023, Trevor Milton, who led Nikola Corporation, was convicted of fraud after a jury found he had lied persistently about the company.

In April 2024, Milton alleged that the board at Nikola is “too compromised with rampant misconduct and potential fraud.” He also opined that the board must fire current CEO Steve Girsky and those involved in their decisions, as failing to do so might make the company go bankrupt by year-end.

In June last year, Milton also filed a multi-billion derivative lawsuit against the company’s present chief legal officer Britton Worthen, and its directors.

Milton announced the lawsuit via the social media platform LinkedIn. “Just filed a multi billion dollar derivative malpractice lawsuit against Nikola motor company’s directors and chief legal officer Britton Worthen. GET READY!” Milton wrote.

In October, Nikola reported third-quarter revenue of $25.18 million, missing analyst estimates of $37.23 million, according to Benzinga Pro. The EV maker reported a third-quarter adjusted loss of $2.75 per share, missing estimates for a loss of $2.35 per share.

Price Action: NKLA shares are trading lower by 16.2% to $0.98 at the last check Thursday.

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