1. Nikola's stock fell over 40% amid bankruptcy report. 2. The company is exploring debt restructuring options with advisors. 3. Nikola has $270 million long-term debt and $200 million cash. 4. Continued cash burn expected to exceed $615 million in 2025. 5. Nikola's past success aided many EV startups, but few remain viable.
The significant drop in stock price indicates severe investor concern about liquidity and bankruptcy risks, akin to other EV startups like Lordstown, which faced similar issues prior to major stock drops.
The news directly impacts investor perception of Nikola's viability, with potential long-lasting effects on its market standing.
Immediate concerns over bankruptcy and restructuring will likely influence NKLA's price in the near term, similar to Lordstown's swift declines during financial distress.