Nikola Nears Bankruptcy

Nikola (NKLA) seems to be on its way out following a report from the Wall Street Journal on Thursday. If you have invested in the stock, you may have noticed a 20% decrease. 

Why Did This Happen?

Nikola has struggled to raise funds in order to compete with other EV giants such as Tesla and Rivian. The company is chasing a constant loss and is getting absolutely butchered in terms of business. Nikola is losing thousands upon thousands of dollars on every unit sold and there are no signs of stopping. Not to mention they have lost hundreds of millions of dollars since 2023.

The company refused to comment on any bankruptcy claims.

Should You Invest?

I am no expert advisor but no, you should not. I do not believe this is a good stock to invest in for the simple fact that its shares have lost 99% of its value. The stock has dipped below $1 and has performed multiple stock splits to keep up with the NASDAQ's listing rules. 

Although this is no telltale sign, the fact they have declined to speak about filing for bankruptcy is a bit worrisome. There are rumors that the company might sell off portions of it or even the entire thing. The EV world is a huge one and in order to keep up you need a lot of backing. Unfortunately, Nikola fell short.