Nikola Eyes Sale, New Partners As It Risks Running Out Of Cash By End Of First Quarter

EV truck maker Nikola Corp. NKLA is reportedly exploring options including selling parts or all of the company to prevent a cash crunch.

What Happened: Nikola is also considering options including bringing on partners or raising new funds, according to a Bloomberg report, citing people familiar with the matter.

The report, however, noted that no decisions have been made.

Nikola did not immediately respond to Benzinga‘s request for comment.

However, during Nikola’s last earnings call in October, the company’s CEO Steve Girsky admitted that the company is talking to potential partners who can provide capital.

“We are actively talking to lots of potential different partners who value what we do and value what we’ve built,” Girsky then said.

Why It Matters: The company in October also said that it has only sufficient capital to last through the first quarter of 2025. The company ended the third quarter with about $198 million in unrestricted cash

"We are examining every opportunity to optimize cash. We estimate that our existing cash is sufficient to fund our forecasted operating costs and meet our obligations into but not beyond Q1 2025. We continue to seek to maintain sufficient capital to support our business," company CFO Tom Okray then said.

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next:

• Tesla Launches Refreshed Model Y In US With 25% Price Hike, Full Self-Driving Included

Photo courtesy: Shutterstock