Why Nikola (NKLA) Stock Is Getting Hammered

Nikola Corp NKLA shares are trading lower by 30.1% to 26 cents Monday morning. The company last week announced it received a delisting letter from the Nasdaq. The company has also filed for Chapter 11 bankruptcy in Delaware, seeking to auction assets while maintaining limited operations through March 2025.

What To Know: The electric truck maker has struggled financially, with its stock losing some 98% in the past year. Despite raising $300 million in December, its $47 million cash reserves were projected to last only until April 2024.

Read Also: Nikola Files For Bankruptcy, Seeks Auction For Sale Of Its Assets

The company will continue supporting its hydrogen fuel cell trucks and HYLA fueling network but seeks partners to sustain operations beyond March 2025.

What Else: CEO Steve Girsky highlighted Nikola's achievements, including North America’s first Class 8 hydrogen fuel cell trucks, but acknowledged market challenges had made survival impossible despite aggressive cost-cutting and fundraising efforts.

Nikola joins EV startups like Fisker and Lordstown Motors in financial distress as capital markets tighten and demand wanes. It reported assets between $500 million and $1 billion, with liabilities ranging from $1 billion to $10 billion, highlighting its deep financial troubles.

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According to data from Benzinga Pro, NKLA has a 52-week high of $34.50 and a 52-week low of $0.27.