US EV startups under spotlight as Nikola files for bankruptcy
(Reuters) – Nikola filed for bankruptcy protection on Wednesday, the latest electric vehicle firm to shut operations after grappling with tepid demand, rapid cash burn and funding challenges.
The move ends a challenging journey for the electric truck maker which included several leadership changes, sinking share value and short-seller allegations.
Here is a look at how EV startups have been faring in the face of high interest rates and inflation, pushing them to seek fresh capital to continue operations.
NIKOLA
Nikola is the latest EV maker to file for bankruptcy, after a tumultuous journey in a highly competitive industry, wrought with numerous vehicle issues and weak demand.
Nikola said it decided to initiate a sale process of its assets to maximize value and ensure an orderly wind down.
The firm will continue some operations for trucks in the field and some hydrogen-fueling operations through the wind down.
FISKER
Fisker filed for bankruptcy last year after experiencing weak demand for its Ocean SUVs and facing competition from large players such as Tesla.
The collapse of its talks with an automaker – which Reuters had reported to be Nissan – meant that it was denied $350 million in funding from an unnamed investor that was contingent on the automaker’s investment and forced Fisker to explore options.
In its Chapter 11 bankruptcy filing in Delaware, Fisker’s operating unit, Fisker Group Inc, estimated assets of $500 million to $1 billion and liabilities of $100 million to $500 million.
RIVIAN AUTOMOTIVE
Rivian is seen to be better placed than its rivals, thanks in part to a joint venture with German automaker Volkswagen Group, which in November raised its funding amount to $5.8 billion to develop electric vehicles and architecture.
LORDSTOWN MOTORS
Lordstown Motors filed for bankruptcy protection in 2023 and put itself up for sale after failing to resolve a dispute over a promised investment from Taiwan’s Foxconn.
In the complaint, Lordstown accused Foxconn of fraudulent conduct and a series of broken promises in failing to abide by an agreement to invest up to $170 million in the electric-vehicle manufacturer.
LUCID GROUP
Lucid Group said in October it expects to raise $1.67 billion from a stock sale as it looks to ramp up production of its new Gravity SUV.
The company is backed by Saudi Arabia’s Public Investment Fund, its largest shareholder, which also committed $1.5 billion in cash in August last year.
CANOO
Canoo said it filed for bankruptcy under Chapter 7 last month, ceasing operations effective immediately.
The EV startup faced financial challenges and struggled to raise additional funding from the U.S. Department of Energy’s Loan Programs Office and uncertain demand for its microbus-inspired cargo vans.
PROTERRA
Proterra filed for Chapter 11 bankruptcy protection in 2023 due to slowing demand and financial challenges.
The company, which made electric buses as well as battery systems, went public in 2021 through a merger with a blank-check firm that valued it at $1.6 billion, including debt.
(Reporting by Zaheer Kachwala, Priyanka and Akash Sriram in Bengaluru, and Abhirup Roy in San Francisco; Editing by Siraj Kalluvila, Savyata Ghosh and Maju Samuel)
READ the latest news shaping the hydrogen market at Hydrogen Central
US EV startups under spotlight as Nikola files for bankruptcy, source
