(This Feb. 6 story has been corrected to clarify that Nikola ( NKLA ) has done just one reverse stock split, not multiple, in paragraph 11 and in previous versions of the story)

(Reuters) - Electric-truck maker Nikola ( NKLA ) is nearing filing for a bankruptcy, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

The company's shares fell 20% to 60 cents in extended trading.

Phoenix, Arizona-based Nikola ( NKLA ) was working with law firm Pillsbury Winthrop Shaw Pittman to explore options including a sale or restructuring of the company in bankruptcy, according to the report.

The company has been struggling to raise funds and its cash balance has dwindled as it continues to lose hundreds of thousands of dollars for every unit sold.

Nikola ( NKLA ) said on Thursday it was evaluating a variety of options, including a financing as part of a financial restructuring.

However, the company declined to comment on whether it was exploring bankruptcy proceedings.

Pillsbury Winthrop Shaw Pittman did not immediately respond to a Reuters request for comment.

The electric-truck maker was exploring options, including selling parts of its business or the entire company, Bloomberg News reported last month.

Nikola's ( NKLA ) cash and cash equivalents fell sharply to $198.3 million at the end of September, compared with $464.7 million at the end of 2023.

Its shares have lost more than 99% of their value since going public in 2020.

The stock has fallen below the $1-mark several times and the company resorted to a reverse stock split last year to comply with Nasdaq's listing rules.