As the CEO of Tesla dismantles the U.S. federal government, a rival EV maker with a related moniker shutters its doors. Reportedly, Nikola Corp. — an auto startup that was once a favorite of Wall Street analysts and retail investors — filed for bankruptcy protection on Wednesday after failing to secure a buyer or raise additional funds to maintain operations.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” Nikola CEO Steve Girsky said in a release.
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Nikola Corporation, founded in 2015 by Trevor Milton, is an American manufacturer focusing on electric and hydrogen-powered vehicles, primarily heavy-duty trucks. Its flagship products include the Nikola Tre, an electric and hydrogen fuel cell truck for North America and Europe, and the Nikola Two, a hydrogen-powered long-haul truck. The Nikola Badger, a planned hydrogen-electric pickup, was canceled in 2020 as the company shifted its focus to larger vehicles.
Nikola has faced significant challenges, including accusations of fraud following a 2020 report by Hindenburg Research, which led to Trevor Milton’s resignation. He was later indicted for fraud-related charges.
Despite these setbacks, Nikola continued to develop its trucks and expand its hydrogen infrastructure, with partnerships with companies like General Motors and CNH Industrial. Though progress has been slow, Nikola aimed to revolutionize the transportation sector with its vision of sustainable, hydrogen-powered vehicles.
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Reportedly, Nikola said Wednesday that it plans to pursue an auction and sale process of its assets, pending court approval. The company said it has approximately $47 million in cash to fund its bankruptcy activities, implement the sale process and exit Chapter 11.
“Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders,” the company said.