According to foreign media reports, electric truck manufacturer Nikola confirmed that the company will carry out a new round of layoffs.
Nikola is in huge financial trouble as the hydrogen-powered truck maker makes a last-ditch effort to avoid bankruptcy.
, More than two years ago, Nikola’s founder and former CEO was convicted of fraud for lying to shareholders about the company’s technology.
At the time, many thought it would be the end of the company, which had a market value of $34 billion, but the company is still alive today.
Although it is only barely surviving, it is still struggling to hold on.
In the past two years, Nikola has experienced many difficulties, such as problems with its all-electric trucks that caused the vehicle to catch fire and the company had to recall the entire fleet.
, Photo source: Nikola, so Nikola gave up pure electric trucks and started producing hydrogen-powered trucks, but suffered heavy losses in sales, and some customers reported some serious problems with the vehicles.
, Nikola lost about $200 million per quarter, and at the end of the previous quarter, the company had almost $200 million in cash left.
The company is currently valued at approximately US$100 million due to market expectations that the company will soon go bankrupt.
, In a series of filings with the U.S. Securities and Exchange Commission this week, Nikola disclosed that he had successfully secured $65 million through transactions with note holders.
Based on its current burning rate, this will buy the company about a month.
, In addition, Nikola also announced that it would sell more shares in an attempt to raise $100 million.
However, the company also disclosed some serious problems in the documents.
Nikola confirmed that the company does not have enough funds to survive the next quarter: “We currently expect that the existing financial resources will only be enough to support our projected operating costs and meet our obligations until the first quarter of 2025, but cannot last for the entire quarter.
“, Nikola also announced further layoffs this month to reduce capital consumption: “For example, in October and December 2024, we reduced the number of employees to make our staffing more in line with current needs.
“, Layoffs in October accounted for approximately 15% of Nikola’s total workforce.
It is unclear how many people will be affected by this month’s new round of layoffs.
Last week, a drone photographed Nikola’s Arizona factory and found less activity than usual, with many trucks parked on the grounds, but the vehicles had no battery packs installed.
, Nikola warned that layoffs could have a negative impact on its activities because layoffs could “drain institutional knowledge, reduce team morale, adversely affect our reputation, and cause the company to face challenges in attracting new talent.
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