Nikola, the American hydrogen vehicle company, saw its stock price plummet more than 41% following reports of an imminent bankruptcy protection filing.
On Friday, Nikola’s shares dropped 41.11%, closing at 44 cents on the New York Stock Exchange.
The sharp decline followed a report in The Wall Street Journal that Nikola was about to file for bankruptcy.
According to the Wall Street Journal, Nikola is working with the law firm Pillsbury to explore all available options, including a potential sale or restructuring. Sources revealed that the company is actively preparing to submit a bankruptcy protection filing.
The news immediately impacted Nikola’s stock, which had already fallen about 23% in after-hours trading the previous day. The situation worsened during regular trading hours, with the stock plunging more than 41% by the closing bell.