Nikola Corporation, an electric truck-maker once valued at over $30bn, has filed for bankruptcy in the US after its founder Trevor Milton was sent to prison for fraud. The company’s share price collapsed amid claims of misleading investors and a short-seller report accusing Milton of creating “an intricate fraud built on dozens of lies”. In 2021, Nikola agreed to settle claims with US regulators for $125m without admitting wrongdoing.
Milton founded the company in 2014, claiming thousands of pre-orders worth billions of dollars. However, after going public in 2020, Hindenburg Research published a report revealing the company had faked a video showing its truck driving on a road in 2017. Milton was found guilty of fraud and sentenced to four years in prison and fined $1m.
Despite selling hundreds of hydrogen-powered trucks since Milton’s exit, Nikola’s latest financial results showed a loss of $481m in the nine months to September 2024. The company filed for bankruptcy protection with over $1bn in liabilities and $47m in cash available, aiming to sell its assets. CEO Steve Girsky attributed the bankruptcy to market and macroeconomic factors affecting demand for electric vehicles.
Source: https://finance.yahoo.com/news/tesla-rival-once-valued-30bn-170805338.html