Electric vehicle (EV) truck maker Nikola Corporation has filed for Chapter 11 bankruptcy protection. The company, known for its hydrogen-powered trucks, has struggled to meet production costs and scale its business. In 2020, founder Trevor Milton was convicted of fraud related to a promotional video that misrepresented the capabilities of one of his trucks.
Nikola’s rise was dramatic, but its fall was slow. The company had promised zero-emissions heavy trucks for long- and short-haul routes, aiming to decarbonize road-going transport of goods. However, it failed to meet production targets, and GM scaled back its investment in the company due to concerns over Nikola’s financial stability.
Despite efforts to stay afloat, Nikola lost money on each truck sold, with costs exceeding $1 million per unit. The company produced only 88 trucks in the third quarter of 2024, selling for $380,000 each. This significant gap between production costs and revenue likely contributed to the company’s downfall.
Nikola has filed for bankruptcy protection, which will allow it to sell off assets, find investors, or secure funding to continue operations. The company plans to maintain its hydrogen refueling network for existing vehicles until March 2025, but beyond that, its future remains uncertain.
Source: https://www.motortrend.com/news/ev-hydrogen-truck-maker-nikola-bankruptcy