Nikola to further reduce headcount as it struggles to stay afloat – report

Shares of struggling electric truck manufacturer Nikola (NASDAQ:NKLA) fell to another all-time low on Thursday amid reports that the company is undertaking another round of layoffs.

According to Electrek, Nikola (NKLA) is losing around $200M each quarter and is relying on stock offerings to raise cash and delay bankruptcy.

Earlier this week, Nikola (NKLA) entered into an equity distribution agreement with BTIG to sell another $100M in shares, and on December 3, Nikola (NKLA) received $65M in gross proceeds through a deal arranged with its noteholders. Electrek estimates that considering its current burn rate, this gives the company another month to operate.

Back in October, the company warned that it would run out of funding in the first quarter of 2025, and the subsequent dilutions have reduced the value of the stock by 66% since then (the stock is down 92% year-over-year). Since December 2022, the repeated stock offerings have tripled the number of outstanding shares in a little under two years.

At that time, the company issued a dire warning that it would not be able to continue operations.

“We have taken steps to reduce our cash requirements in an effort to extend our cash runway, and may need to do so again in the future. If we are not able to secure sufficient capital to fund our operations, our business and results of operations will be materially adversely affected.”