THE EV BUBBLE CONTINUES TO DEFLATE: EV maker Nikola exploring options including potential sale.

EV maker Nikola is exploring options including selling parts of its business or the entire company as it struggles with a cash crunch, Bloomberg News reported on Thursday.

The company’s shares slumped 28% in late-afternoon trading.

Possibilities under consideration also include bringing on partners or raising new funds, the report said, citing people familiar with the matter.

Nikola did not immediately respond to a Reuters request for comment.

The company has been grappling with high costs related to the production ramp up of its fuel-cell electric truck. Its cash and cash equivalents had fallen sharply to $198.3 million at the end of September, compared with $464.7 million at the end of last year.

Nikola’s shares lost nearly 96% of their value in 2024.

Startups are hard. Startups in the auto industry are much harder. Startups in a segment of the auto industry dependent on subsidies and mandates to overcome market forces… well, there’s more shaking out left to do.