Hydrogen and electric truck manufacturer Nikola is reportedly exploring strategic options, including the potential sale of parts or even the entirety of its business.
This development follows a 28% drop in the Arizona-based company’s shares on Thursday (January 23). Nikola is now exploring options such as bringing on strategic partners or raising additional funds to stabilise its operations, according to reports.
The firm’s cash and cash equivalents dropped significantly to $198.3 million by the end of last year, down from $464.7 million at the close of 2023. Additionally, its shares suffered a steep decline, losing approximately 96% of their value throughout 2024.
Furthermore, reports have suggested Nikola CEO Stephen Girsky has left the company, although this is not confirmed.
In its Q3 earnings call, Girsky said Nikola is “actively talking to lots of potential different partners who value what [Nikola] do and value what [Nikola has] built.”
Chief Financial Officer (CFO) Tom Okray added, “We are looking for these like-minded partners who have stated corporate-wide decarbonisation goals for the next decade. Together, we form a hydrogen economy that we believe can thrive.”
Despite the challenges faced by Nikola, it did announce “record sales” for its hydrogen fuel cell-powered trucks last October. They reported that up to 200 vehicles had been sold, with 88 of these coming in Q3 2024.
Read more:Nikola hits record hydrogen-powered truck sales in Q3
At the time, Girsky said, “Despite overall market headwinds, Nikola remains focused on our mission to pioneer solutions for a zero-emission world, and we’re doing it one truck at a time.”
H2 View has reached out to Nikola for comment and will update the article accordingly.
