Hydrogen electric truck Nikola Corp. Filed for Chapter 11 Bankruptcy Protection Wednesday, after failing to find a buyer or secure additional funds for business maintenance.
Nikola was once a Darling Silicon Valley, worth $ 30 billion in June 2020 after being made public through a special purpose. But a series of scandals surrounding the founder and former CEO of Trevor Milton put the company in a free fall.
Now, Nikola plans to go to auction with its assets, pending the approval of the Court of Justice, according to a regulatory deposit.
“Like other companies in the electric vehicle industry, we have faced various market players and macroeconomic factors that have influenced our ability to operate,” Steve Girsky, President and CEO of Nikola, said in a statement.
“In recent months, we have taken many actions to raise funds, reduce our obligations, clean our balance sheet and maintain cash to maintain our activities. Unfortunately, our best efforts were not enough to overcome these Significant challenges and the Board of Directors has found that Chapter 11 represents the best possible way forward under the conditions for the company and those concerned. “
The company has about $ 47 million in cash to finance the bankruptcy process. The proposed Nikola bids procedure would allow interested parties to submit bids for the acquisition of Nikola’s assets, regardless of the debt or obligations of the company.
Some of these assets will include Nikola 8’s electric fuel cell trucks and electric battery truck platforms. Nikola was also in the process of developing a Hyla hydrogen refueling motorway in California.
Bankruptcy deposit covers a year that unfolds. Nikola had been considered a golden example of a SPAC that went right-and had even closed a lot of billions of dollars with General Motors-until Milton was accused of fraud of excessive claims on the company’s electric truck technology.
Prosecutors in the case against Milton claimed that he had cheated investors since 2019, lies about Nikola having built a truck from the “ground” and the development of batteries that were actually bought elsewhere.
Then there was the famous Nikola marketing video showing a truck that seems to drive with its own strength. In fact, he was running down a hill.
Following this video, a report by Hindenburg’s survey called the company a fraud and Milton resigned in September 2020. He was convicted of cable and mobile fraud in 2022. He is currently out of war while addressing his four -year prison sentence.
Nikola eventually paid a penalty of $ 125 million in an arrangement with the US Securities and Exchange Commission. The company’s stock collapsed, resulting in serious losses for investors and the company.
Nikola has been trying to raise enough capital to continue businesses since then. More recently, in December 2024, Nikola tried to raise $ 100 million in a joint stock sale to pay off its debts and increase equality after warning investors last month during the third quarter profits that The company only had enough cash to support its business in Q1 2025.
Nikola reported $ 8 million in cash at the end of the third quarter.
