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DETROIT — Shares of Nikola closed Thursday down 27.8% after a report that the embattled electric truck maker is exploring options to sell parts or all of the business.
The stock closed Thursday at 85 cents apiece after hitting a new 52-week low of 76 cents prior to the end of trading.
Bloomberg News reported the potential sale Thursday afternoon and noted other possibilities under consideration include bringing on partners and raising new funds.
The report comes three months after Nikola warned investors on its third-quarter conference call that the company only had enough cash to support its business into the first quarter of 2025 but not beyond. Nikola reported $198 million in cash to end the third quarter.
Nikola CEO Steve Girsky, a major stakeholder in the company, on the earnings call said the company was “actively talking to lots of potential different partners who value what we do and value what we’ve built.”
Girsky, a former bank analyst and General Motors executive, took Nikola public through his special purpose acquisition company, or SPAC, in June 2020. It was a catalyst for more EV companies to go public through SPACs.
Much similar to Nikola, most, if not all, have failed to live up to their initial expectations. Many, including Nikola, were the center of federal investigations, scandals and executive upheavals.
Nikola did not immediately respond to CNBC’s request for comment on the Bloomberg report.