Nikola Corp NKLA shares are trading lower Thursday following a report indicating the company confirmed another round of layoffs.
What Happened: Nikola has confirmed a fresh round of layoffs just months after the company slashed approximately 15% of its workforce as it attempts to avoid bankruptcy, according to Electrek.
The report indicates that it’s not clear how many employees will be affected by the new round of layoffs this month. However, a drone flyover of Nikola’s Arizona factory reportedly showed “less activity than usual” and many trucks parked “without battery packs.”
Elektrek also reported that Nikola is running out of cash and launched a $100 million offering, but noted that the company has not announced the closing of that offering.
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Nikola said in a regulatory filing on Monday that it needs to raise additional capital to avoid negatively impacting operations.
“We currently estimate that our existing financial resources are only adequate to fund our forecasted operating costs and meet our obligations into, but not through, the first quarter of 2025,” the company said in the filing.
The report indicates that Nikola is losing approximately $200 million per quarter. Nikola had approximately $198 million in cash as of Sept. 30.
NKLA Price Action: Nikola shares were down 0.31% at $1.57 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Nikola.
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