Nikola has filed for Chapter 11 bankruptcy, representing another significant downfall in the SPAC-backed electric vehicle sector, hampered by previous fraud allegations and ongoing financial losses. Rivian saw a 9% decline in its stock after a downgrade from Bank of America, which noted risks stemming from potential federal support loss and EV market challenges. The looming repeal of Inflation Reduction Act incentives could further destabilize smaller EV companies such as Rivian and Lucid, leading to increased market volatility and uncertainty for the industry as a whole.
"Nikola filed for Chapter 11 bankruptcy, marking the collapse of another SPAC-backed EV startup, burdened by past fraud issues and unsustainable financial losses."
"Rivian faced a sharp 9% stock drop following a Bank of America downgrade, citing mounting risks, including potential loss of federal support and broader EV market headwinds."
"The potential repeal of Inflation Reduction Act incentives under a future Trump administration poses significant risks to smaller EV makers like Rivian and Lucid, intensifying market volatility."
"There'll be no way out for Nikola. It's not like Rivian or Lucid where there’s maybe a prayer; Nikola is simply done."
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