Nikola Exploring Bankruptcy, WSJ Reports, Sending Stock Tumbling

(Bloomberg) — Nikola Corp. is exploring a possible bankruptcy filing, the Wall Street Journal reported, sending shares of the hydrogen-vehicle maker down about 30% in postmarket trading.

The cash-poor company is working with its law firm and near a filing, among other possible options, the report said, citing unnamed sources.

“Nikola continuously assesses its financial position and liquidity needed to operate its business,” the company said Thursday in an emailed statement. “As part of that review, the company is evaluating a variety of options, which includes a financing as part of a financial restructuring.”

Shares of the company dropped 28% to 54 cents as of 4:29 p.m. in New York.

Bloomberg reported Jan. 23 that Nikola was exploring options to stave off a cash crunch, including potentially selling parts or all of the company.