Nikola, the much-hyped hydrogen-truck maker that was briefly valued more than Ford Motor, is nearing a bankruptcy filing, according to people familiar with the matter.

Nikola shares tumbled 23.3% in extended trading.

Phoenix-based Nikola has been working with its law firm Pillsbury Winthrop Shaw Pittman to explore options that could include a sale or restructuring of the company in bankruptcy, the people said.

A representative for Nikola said the company continues to assess its financial position and liquidity needs, and is evaluating a number of options including financing as part of a financial restructuring.

Nikola went public in 2020 when it hadn’t sold a single truck before its founder was convicted of securities fraud in 2022 for misleading investors about its zero-emissions technology.

The company in December launched $300 million in debt and equity offerings in an attempt to raise capital to fund working capital, according to Nikola’s public disclosures. Last year, Nikola Chief Financial Officer Thomas Okray told investors the company only had enough cash to last until April of this year.

Nikola produced more than 80 trucks at a net loss of nearly $200 million, according to its latest earnings report for the quarter ended in September.

The company’s founder and former CEO, Trevor Milton, was convicted of fraud in 2022 for misrepresenting the company’s business and sentenced to four years in prison. Milton, who is appealing his conviction, couldn’t be reached for comment Thursday.

Milton’s vision for Nikola was based around a future of hydrogen-powered heavy trucks that would be leased to companies seeking to reduce the emissions of their transportation fleets. He resigned from Nikola after a short-seller report alleged he made a litany of misrepresentations about the company’s progress in creating functional vehicles and producing the hydrogen fuel needed to run them.

Designing and producing batteries at scale for emission-free, long-haul trucks has proven to be a tougher technological challenge than for cars. The batteries available to Nikola and others have been too heavy while packing too little power to provide an economic means of moving reasonable freight volumes for long distances, said Colin Adams, partner at restructuring advisory firm Uzzi & Lall.

“Companies and their investors have spent hundreds of millions of dollars trying to design and manufacture lighter, more efficient batteries at scale,” Adams said. “Right now, you’re seeing the results in the competition between capital and physics.  In this first round, physics appears to be the winner.”