- Nikola has filed for bankruptcy protection
- The company is seeking approval to sell remaining assets
- The company was once worth more than Ford during the EV startup boom
Nikola announced on Wednesday that it has filed for Chapter 11 bankruptcy protection, joining a growing list of highly publicized EV startups that have faced a similar fate in recent years, including Lordstown Motors, Fisker, and Canoo.
Founded in 2014, Nikola stated that it is seeking approval for the sale of its assets and will continue operating to support existing customers and certain hydrogen-fueling operations through the end of March. Among its assets is approximately $47 million in cash on hand.
Nikola has yet to announce its Q4 2024 financial results, but in a filing last December, it reported a net loss of $481.2 million for the first nine months of that year.
CEO Steve Girsky said in a statement that the company had attempted to raise capital and reduce its debt in recent months, but ultimately, the board determined that filing for Chapter 11 bankruptcy was the best possible outcome.
Nikola Badger
Nikola was once considered one of the more promising EV startups. Initially, the company focused on battery-powered electric trucks before transitioning to hydrogen fuel cell electric trucks, along with a hydrogen fueling operation called Hyla. There was also a partnership with General Motors that included a plan to build a hydrogen pickup truck dubbed the Badger.
However, things took a turn for the worse in 2020 when the DOJ and SEC began investigating Nikola over fraud allegations brought by investment firm Hindenburg Research. Around that time, Nikola’s original CEO and founder, Trevor Milton, stepped down from the company. He was later found guilty of securities and wire fraud, resulting in a four-year prison sentence, while the company reached a settlement with the SEC. Additionally, in 2023, the company faced vehicle fires and a subsequent recall.
Nikola’s current share price values the company at less than $50 million—a steep decline from the $27 billion valuation it held in 2020 during the EV startup boom, when it was valued more than Ford.