A Nikola Tre battery-electric truck. (Andreas Gebert/Bloomberg News)
Nikola CEO Steve Girsky and Chief Financial Officer Tom Okray are facing a March 17 deadline for receipt of a stalking horse bid for the bankrupt truck maker.
A stalking horse bid is an initial offer for assets, meaning it sets a bar other bidders cannot undercut. It was a tactic the administrators of Yellow Corp. adopted in the early days of that company’s bankruptcy, before switching to an auction of individual assets.
Nikola’s assets are less easily divisible, particularly given the intertwined nature of its 691,000-square-foot manufacturing plant in Coolidge, Ariz., and its Hyla refueling business.
Efforts by Nikola to find a white-knight suitor faltered after a months-long search, leading to the Feb. 19 Chapter 11 bankruptcy filing with the U.S. Bankruptcy Court for the District of Delaware. Per court filings, an “international vehicle manufacturing company” walked away from buying the company in December, apparently hoping for a better deal through a bankruptcy sale. When filing for court protection, Nikola said it would seek to sell its assets.
If no suitable bids arrive by the stalking horse deadline, court documents indicate that an auction will take place April 7. The court said it would make public the results of that auction on April 10.
Nikola customers are optimistic a deal will go through.
Bayne
“I’m still quite confident that they’ll eliminate some of the early debt they took on and that someone will come in and scoop them up,” Duncan Trucking Vice President of Strategic Initiatives Brad Bayne told Transport Topics in a March 12 interview. Phoenix-based Duncan is the parent company of Rialto, Calif.-based 4Gen Logistics, which operates 15 Nikola hydrogen fuel cell electric trucks.
“I’m hopeful,” said Jim Gillis, president, Pacific Region at IMC Logistics, although he added, “It’s certainly a nerve-wracking period.” IMC has 50 Nikola FCEV tractors, which Gillis said was the largest U.S. deployment of FCEV tractors. All operate in Southern California. The company’s first FCEVs were deployed in February 2024, and IMC is fast approaching 1 million miles with its FCEV fleet, Gillis said. IMC ranks No. 5 on the Transport Topics sector list of largest drayage carriers in North America.
Both 4Gen and IMC are part of a group of four carriers operating Nikola trucks in California that meet weekly to discuss possible scenarios once the company’s fate is more clear, Bayne said. Gillis added, “We’re figuring out Plan B, C & D for if Nikola doesn’t survive.” IMC is in almost daily contact with Nikola’s leadership, he said.
Nikola has been very supportive despite its problems, SalSon Logistics CEO Jason Fisk said, noting that the company is in touch with SalSon every day. The drayage-focused carrier has 10 Nikola battery-electric tractors and has plans to send some of its in-house mechanics to Phoenix for training. “The product is good enough, so I hope there is someone that comes in and buys them,” Fisk said.
The future of the Hyla hydrogen-fueling unit remains a concern. (Mindy Long for Transport Topics)
Fueling Nikola trucks is another issue for customers, so the future of the Hyla hydrogen-fueling unit remains a concern. California carriers must keep the tractors operational to remain compliant with the state’s Hybrid and Zero-Emission Truck and Bus voucher program. “Frankly, if Hyla stops operating on March 31, we’re screwed,” one source told TT.
If Nikola fails to find a savior, Hyundai will be the only solvent serial manufacturer of Class 8 FCEV trucks for North America. Peterbilt offers a fuel cell version of its 579 Model day cab, while fellow Paccar unit Kenworth offers a FCEV option for its flagship T680 semi. Serial production of both tractors is expected to begin in 2025, but neither company has confirmed a launch date.
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Volvo Trucks North America and Daimler Truck North America are yet to announce FCEV plans for North America, although the two companies are working on trucks in Europe.
Europe’s other truck-making powerhouse, Traton, and its North American International Motors unit plan to concentrate on battery-electric trucks rather than enter the hydrogen fuel cell arena.
