According to @KobeissiLetter, a record 2,221 US small firms have filed for bankruptcy under Subchapter V year-to-date, signaling recession-like stress in the small business segment, source: @KobeissiLetter. According to @KobeissiLetter, Subchapter V is intended for businesses and individuals with under $3 million in debt to reorganize faster and at lower cost than traditional Chapter 11, source: @KobeissiLetter. According to @KobeissiLetter, small business bankruptcies have risen 83% over the last five years, source: @KobeissiLetter. According to @KobeissiLetter, the surge has persisted despite the debt limit being reduced from $7.5 million to $3 million last year, making it harder for larger businesses to qualify, source: @KobeissiLetter. According to @KobeissiLetter, the increase is being driven by persistently high borrowing costs, cautious consumer spending, and broader economic uncertainty weighing on small business earnings, source: @KobeissiLetter. According to @KobeissiLetter, US small firms are struggling, source: @KobeissiLetter.

According to The Kobeissi Letter, Nikola's stock ($NKLA) plummeted by 60% in premarket trading after the company filed for Chapter 11 bankruptcy. This significant decline reflects investor reactions to the bankruptcy filing, which may lead to potential liquidation or restructuring. Traders are advised to closely monitor developments as they could impact the electric vehicle market and related stocks.