EV truck maker Nikola Corp. NKLA is reportedly exploring choices together with promoting elements or the entire firm to stop a money crunch.
What Occurred: Nikola can be contemplating choices together with bringing on companions or elevating new funds, in accordance to a Bloomberg report, citing folks conversant in the matter.
The report, nonetheless, famous that no selections have been made.
Nikola didn’t instantly reply to Benzinga‘s request for remark.
Nevertheless, throughout Nikola’s final earnings name in October, the firm’s CEO Steve Girsky admitted that the corporate is speaking to potential companions who can present capital.
“We’re actively speaking to numerous potential totally different companions who worth what we do and worth what we’ve constructed,” Girsky then stated.
Why It Issues: The corporate in October additionally stated that it has solely adequate capital to final by the primary quarter of 2025. The corporate ended the third quarter with about $198 million in unrestricted money
“We’re analyzing each alternative to optimize money. We estimate that our present money is adequate to fund our forecasted working prices and meet our obligations into however not past Q1 2025. We proceed to hunt to keep up adequate capital to assist our enterprise,” firm CFO Tom Okray then stated.
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