Nikola report highlights risks company faces amid operating losses, uncertain markets

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Nikola officials say the company's survival will depend on its ability to secure financing to pay for debt and operations, and they say there's no certainty about that. abc15

PHOENIX — A recent regulatory filing from Nikola Corp. has revealed concerns about whether the Phoenix-based zero-emissions vehicle maker will have enough money to last the coming year, but the company’s chief financial officer says it has options for raising capital.

In its annual report released on Feb. 23 along with its fourth-quarter earnings report, Nikola put a spotlight on the high-risk nature of its business, pointing out its net loss of $784.2 million in 2022 — up from a $690.4 million loss the year before — and its accumulated deficit of about $2 billion.

At this stage, Nikola said, its survival will depend on its ability to secure financing to pay for debt and operations, and there’s no certainty about that. “If we are unable to raise sufficient capital when needed, our business, financial condition and results of operations will be materially and adversely affected, and we will need to significantly modify or terminate our operations and our planned business activities,” Nikola said in its filing.

 

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