MW Nikola shares are slumping. A report says the hydrogen-truck maker is nearing bankruptcy.

By Barbara Kollmeyer

Shares of Nikola Corp. tumbled late Thursday after a report surfaced that the hydrogen-truck maker is close to filing bankruptcy.

Nikola $(NKLA)$ is working with its law firm Pillsbury Winthrop Shaw Pittman over a possible sale or restructuring, The Wall Street Journal reported, citing sources. Shares sank 32% to 51 cents in premarket trade.

In 2020, the once high-flying EV maker became the target of activist short-seller firm Hindenburg Research, which recently called it quits. The start-up was accused of misleading investors over the functionality of its vehicles. A year later, Nikola founder Trevor Milton was hit with federal fraud charges and later convicted.

MarketWatch has reached out to Nikola for comment.

-Barbara Kollmeyer

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February 07, 2025 05:45 ET (10:45 GMT)

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