The US Nicola people have been depicted in a program organized to present CNH’s new full-electric and hydrogen fuel-cell battery trucks on 3 December 2019 with the US Nicola event in Turin, Italy.
Massimo Pinca | Roots
Detroit – Nicola corporation – An auto startup that was once a favorite of wall street analysts and retail investors – was filed for insolvency conservation after failing to raise additional funds to secure a buyer or to maintain operations.
Nikola said on Wednesday that she is planning to carry forward the auction and sales process of her property, which is pending court approval. The company said that it has about $ 47 million cash to fund its bankruptcy activities, implement the sales process and get out of chapter 11.
“Like other companies in the electric vehicle industry, we have faced various markets and macroeconomic factors that have influenced our ability to operate,” Nikola CEO Steve Girski Said in a release“Unfortunately, our best efforts are not enough to overcome these important challenges, and the board has determined that Chapter 11 represents the best possible passage for the company and its stakeholders in circumstances.”
The proposed bidding procedures, if approved by the court, will allow interested parties to submit a binding offer to acquire Nicola’s property, bought Nicola’s indebtedness and free and clear for some liabilities.
The filing symbolizes the conclusion of the finishing of the years of the Phoenix-based company. At its peak in 2020, Nicola was given maximum importance Ford Motor $ 30 billion, ink from ink Polynomial with General Motors And reverse merger and special objective acquisitions were considered the peak of auto startups to go publicly through companies.
The founder of Nicola Corp, Trevor Milton, comes to court in New York on Monday, September 12, 2022.
Victor J. Blue | Bloomberg | Getty images
The collapse of the company has played over the years, ignited by scams and lies which includes its founder and former CEO and president Trevor Milton. Rapist speaking, energetic, humiliated executive Wire fraud and security guilty of fraud In 2022, to mislead investors about the operation of Nicola and zero-enforcement technology.
Disputes were first made public by short-seler Hindenberg Research after the deal with GM, which included Detroit Automkers $ 2 billion stake in startups.
Nicola’s main products are all-electric and fuel cell electric sectors, which began production in 2022. As the third quarter of last year, the company had since produced only 600 vehicles. Many of those vehicles have been called back due to faults, in which the automaker costs millions of dollars.
Since leaving for the CEO from the Speaker in 2023, Girski has carried forward Nicola, including the production of zero-furnaces trucks, but the company’s capital is decreasing.
Nicola warned investors on their third quarter conference call that the company had only enough cash to support its business. In the first quarter of 2025 But not beyond. Nicola reported $ 198 million cash to end the third quarter.
Nicola’s stock
On the call in October, Girski said Nikola “actively talking to many potential various partners who we give importance to what we do and what we have created.”
Former bank analyst and GM executive, Girski made Nicola public through him Spac in June 2020. It was a catalyst for more EV companies to go publicly through SPACS.
Similarly for Nicola, most, if not all, He failed to live up to their initial expectations. Many federal investigations, scams and executives were the centers of the upheaval.
Nicola’s stock has traded under the beginning of December under $ 2 per share. FactSet’s all -time closing price was approximately $ 80 in June 2020, while factoring 1 -for -30 reverse stock split.
