Nikola Corp

Final Nikola Corp Annual Review for Investors

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1. What Happened to Nikola?

Nikola built electric and hydrogen trucks but collapsed in 2025. Here’s their final year:

• Shutdown: Stopped operations in April 2025, sold nearly all assets, and filed bankruptcy. Shareholders lost everything – stock canceled, $0 returned.
• Revenue vs. Reality: Truck sales doubled to $62.2M in 2024 (up 107% from 2023), but it cost them $190.4M to make those trucks. Losses per truck worsened yearly.
• The Illusion of 2023: A $71M gain from selling their Phoenix Hydrogen Hub project masked 2023’s true losses. Without it, operating losses would’ve been even worse.
• Stock Split Gimmick: A 1-for-30 reverse stock split in 2024 (turning 30 shares into 1) failed to save their Nasdaq listing. Shares ended at $0.29 before delisting.

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2. Financial Health: A Terminal Diagnosis

• Cash Burn: They had ~$500M cash left – enough for ~1 year. But they burned $500M+ annually and admitted needing even more to survive.
• Debt Disaster: Over $300M in toxic debt. Some loans could convert to shares at $1 each (3x the final stock price). Debt holders get paid first; shareholders get $0.
• Losses Accelerating: Day-to-day operations lost $916M in 2024 – up 41% from 2023’s $650M loss. Total losses hit $958M in 2024.
• Accounting Tricks: Used $46M in depreciation and $32M in stock bonuses to make losses look smaller. Shareholder equity swung wildly due to the reverse split – a paper fix, not real progress.
• Tax Wipeout: Wrote off $1.3B in potential tax benefits, signaling no hope for future profits.

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3. What’s Next? Total Collapse

• Liquidation: Remaining assets (patents, factories, etc.) are being sold for scraps.
• Dissolution: The company will cease to exist after bankruptcy.
• Shareholders Wiped Out: All stock canceled – no recovery possible.

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4. External Risks That Sealed Their Fate

• Pink Sheet Gambling: Post-bankruptcy shares (NKLAQ) trade over-the-counter with no protections – high risk, zero oversight.
• Debt Time Bomb: Even if trucks succeeded, $300M debt could’ve converted to 300M+ shares, crushing existing investors with dilution.
• Legal Overhang: Undisclosed costs from ongoing regulatory probes (2021-2024) added financial strain.
• Fire Sale Legacy: Buyers snatched Nikola’s assets (like the Phoenix Hub) at bargain prices – former shareholders got nothing.

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The Bottom Line for Investors

Nikola is dead. Shareholders lose 100%. Key reasons:

1. Catastrophic Costs: Spent $3 to earn $1 from truck sales. Losses grew yearly.
2. 2023’s Masked Crisis: The Phoenix Hub sale hid accelerating operational failures.
3. Financial Tricks Failed: Reverse splits and accounting moves couldn’t fix a broken business.
4. Debt Overpowered Equity: Toxic loans guaranteed shareholders would be last in line.

If you own shares: Consult a tax professional about claiming capital losses.
If considering “bargain” NKLAQ shares: Treat it like gambling – high risk, near-certain loss.

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This isn’t financial advice. Always consult a professional before making investment decisions.

Transparency Note: Nikola’s limited disclosure in their final reports may indicate reduced accountability to investors. Proceed with extreme caution.