Nikola Corporation nkla Shares were trading lower on Thursday after a report suggested bankruptcy may be imminent. NKLA stock has lost more than 94% in the past year, according to Benzinga Pro.
In an article about xformerly Twitter, Fred Lamberteditor-in-chief and a founding member of electrekstressed that more and more employees were being let go and that the company had been silent for weeks, failing to submit production and delivery numbers.
Lambert posted: “Source (new source cannot confirm, but has some credibility) Nikola CEO says Stephen Girsky No more, and the bankruptcy filing is in the hands of attorneys. “
Lambert wrote in his post that a flyover at the Nikola factory revealed a hundred trucks sitting idle with no batteries, painting a grim picture of the company’s future.
Nikola’s troubles start with short salesman in 2020 Hindenburg Accused of fraud, situation worsens after former CEO’s conviction Trevor Milton To lie.
Hindenburg published a report labeling the electric car maker a “sophisticated fraud.” Hindenburg specifically pointed to a video released by Nikola titled “Nikola One,” alleging that the truck was towed to a hilltop and released rather than driven at high speed.
Also read: Hindenburg Research is closing shop: ‘We’re shaking up some empires we thought needed shaking’
December 2023,,,, Trevor Milton, who led Nikola Corporation, was convicted after a jury found him persistently lying to the company.
In April 2024, Milton claimed that Nikola’s board of directors was “compromised by rampant misconduct and potential fraud.” He also believes the board must fire the current CEO Steve Girsky Those involved in the decision-making (failure to do so) could bankrupt the company by the end of the year.
Last June, Milton also filed a multi-billion derivative lawsuit against the company’s current chief legal officer Britton Worthen, and its directors.
Milton announced the lawsuit via social media platforms LinkedIn. “A multi-billion dollar derivative malpractice lawsuit has just been filed against Nikola Motor Company director and chief legal officer Britton Worthen. Get ready!” Milton wrote.
In October, Nikola reported third-quarter revenue of $25.18 million, missing analyst estimates by $37.23 million, according to Benzinga Pro. The EV maker reported a third-quarter adjusted loss of $2.75 per share, missing estimates of $2.35 per share.
Price action: NKLA stock was trading down 16.2% at $0.98 on Thursday’s last check.
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