(Reuters) -Electric truck maker Nikola is approaching the submission of a bankruptcy, the Wall Street Journal reported Thursday, referring to people who are familiar with the issue.
The shares of the company fell 20% to 60 cents in long -term trade.
Phoenix, based in Arizona, Nikola collaborated with law firm Pillsbury Winthrop Shaw Pittman to explore options, including a sale or restructuring of the company in bankruptcy, according to the report.
The company has difficulty raising money and the cash balance has decreased because it continues to lose hundreds of thousands of dollars for every unit sold.
Nikola said on Thursday that it evaluated various options, including financing as part of a financial restructuring.
However, the company refused to comment on whether the bankruptcy procedures investigated.
Pillsbury Winthrop Shaw Pittman did not immediately respond to a Reuters request for comments.
The maker of electric truck explored options, including selling parts of his company or the entire company, Bloomberg News reported last month.
Nikola’s cash and cash equivalents fell sharply to $ 198.3 million at the end of September, compared to $ 464.7 million at the end of 2023.
The shares have lost more than 99% of their value since it was made public in 2020.
The share has fallen below $ 1 market several times and the company resorted to several reverse stock splits to comply with the Nasdaq listing rules.
(Reporting by Akash Sriram in Bengaluru; Edit by Shilpi Majumdar and Shounak Dasgupta)