Within nine months of acquiring Romeo Power, a battery manufacturer, for about $144M shares, Nikola Corporation decided to sell off the company's assets. Due to the high cost of commodities and the company's limited access to cash, Nikola has had difficulty meeting investor expectations, which prompted this decision. Nikola has started legal action under the California Assignment for the Benefit of Creditors (ABC) statutory structure. - Other EV businesses have faced similar difficulties, including Arrival and Lordstown Motors, with Arrival planning to dissolve its merger and Lordstown Motors declaring bankruptcy.
- As a result of pricing reductions and U.S. federal subsidies that reduced the cost of their electric vehicles, Tesla, on the other hand, surpassed forecasts for their deliveries during the second quarter.
- Along with LG Energy Solution and Proterra Inc., Romeo Power is one of the battery manufacturers used by Nikola in the creation of his electric truck prototypes.
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