Categories: EV News

Nikola on edge of ruin again as it lays off employees

Published by
Joshua S. Hill

American electric and hydrogen truck manufacturer Nikola is once again on the edge of ruin, scrounging what money it can to stay afloat even as it lays off employees and is confronted by yet more issues with its trucks.

In filings with the United States Securities Exchange Commission (SEC), the company reported that it no longer has enough money to survive the next quarter. Having only just managed to bring in an additional $US65 million through a deal with noteholders, Nikola is also currently trying to raise a further $US100 million.

The company nevertheless claimed that “our existing financial resources are only adequate to fund our forecasted operating costs and meet our obligations into, but not through, the first quarter of 2025.”

Subsequently, even after laying off 15 per cent of its workforce in October, Nikola has been forced to continue layoffs “in order to better align our staffing with our current needs.”

Nikola recently revealed that it has yet to pay $US80 million out of the $US125 million settlement over misleading shareholders, and even though a court recently granted a $US165 million reimbursement from its convicted former CEO Trevor Milton – who lied to shareholders about the company’s technology – the money has yet to appear.

Trevor Milton was sentenced to four years in prison in December 2023.

To make matters worse, Nikola has had to halt production of its hydrogen fuel cell semi-truck amid complaints that the fuel cell randomly shuts down.

This follows 2023’s recall of all 209 battery-powered trucks it had delivered which was prompted by fires involving the trucks at the company’s headquarters.

 

Recent Posts

BYD sells 1 million EVs and plug in hybrids in first quarter, as it extends lead over Tesla

Chinese automotive giant BYD has sold more than one million new energy vehicles in the…

April 2, 2025

Election stalemate likely to sink Coalition threats to dump NVES penalties

The Coalition will need to win the lower house and win over Teal and Greens…

April 2, 2025

Tesla sales slump continues in Europe despite growing EV market, zero interest loans offered in China

Tesla sales continue plunge in most of Europe in March. And while some brighter spots…

April 2, 2025

Hitting the brakes: Sales of plug in hybrids under cloud as tax cut ends

A tax concession for plug-in hybrid electric vehicles has come to the end of the…

April 2, 2025

Tesla sales stagnate in Norway despite arrival of new Model Y, and surging EV market

The refreshed Model Y has begun sales in Norway, the world's leading electric vehicle market.…

April 2, 2025

Smart charging company introduces multi-car charging function in Australia

New entrant into Australia's smart charging market launches MultiCar function allows users to charge more…

April 2, 2025