Electric vehicle startup Nikola Corp., which once caught investors’ attention with its ambitious plans for hydrogen-powered trucks, has filed for bankruptcy protection. The company, founded in 2015 by Trevor Milton, had surged in value before struggling to turn its electric and hydrogen truck ambitions into a viable business.
Milton resigned as CEO in 2020 after doubts emerged about the company’s technology and customer orders. He was later convicted of securities fraud. Despite efforts from new management, Nikola continued to face significant challenges, including delivering small numbers of electric trucks that were not enough to generate revenue.
In recent quarters, the company had $47 million in cash on hand but $1 billion to $10 billion in liabilities. Its largest creditor is the Securities and Exchange Commission, which is owed $80.2 million for a 2021 settlement. Nikola plans to use the bankruptcy process to sell its assets and wind down its businesses.
The filing marks one of several setbacks for electric vehicle startups that have struggled to turn their ideas into actual products. Lordstown Motors, Arrival, and Canoo have also faced financial difficulties in recent times. However, some companies like Rivian and Lucid Motors remain operational, albeit with reduced valuations.
Nikola’s CEO, Steve Girsky, attributed the company’s struggles to “market and macroeconomic factors” that impacted its ability to operate. The bankruptcy filing is a significant blow to investors who had once pinned their hopes on Nikola becoming the next Tesla of heavy trucks.
Source: https://www.nytimes.com/2025/02/19/business/nikola-electric-truck-bankruptcy.html