The American manufacturer of clean trucks, Nikola, is contemplating a request for deferment of payment as it grapples with significant financial difficulties. Known for producing trucks that operate on electricity or hydrogen, the company is exploring options to seek protection against creditors.
This development, reported by several American media outlets citing insider sources, suggests that Nikola’s management is currently engaged in discussions with legal and financial advisors. However, a definitive decision regarding the deferment application remains pending.
Nikola, named after the renowned nineteenth-century inventor Nikola Tesla, was once a darling of investors, akin to its namesake Tesla. Upon its initial public offering (IPO) five years ago, Nikola was valued at an impressive $34 billion, equivalent to approximately 31 billion euros at that time, despite not having generated any revenue.
Since then, the company has faced a drastic decline in its stock price. From the over $2,000 that investors were willing to pay per share during the IPO, the current stock value has plummeted to less than $1.
This decline is attributed to a series of challenges confronting the company. Notably, founder Trevor Milton was incarcerated after being found guilty of misleading investors. Additionally, a major recall two years ago due to engine fire hazards exacerbated the company’s struggles. Sales figures have also been underwhelming, with Nikola selling only two hundred trucks in the first nine months of last year.