News Summary

Electric vehicle truck maker Nikola Corporation has filed for Chapter 11 bankruptcy protection and plans to sell off its assets at auction, pending court approval. The company, which has $47 million in cash to fund the proceedings, reported assets between $500 million to $1 billion, with liabilities totaling between $1 billion and $10 billion. Founded in 2015 with the aim of creating zero-emission heavy trucks, Nikola faced numerous challenges, including slowed EV adoption growth rates and a series of scandals. A notable scandal involved accusations of fraud after a report by Hindenburg Research revealed that a promotional video of a Nikola truck was staged. This led to an SEC investigation, the resignation and arrest of founder Trevor Milton, and a $125 million settlement with the SEC. Despite going public in 2020 and beginning truck shipments in 2021, Nikola struggled financially, losing significant amounts on each vehicle sold and recalling many due to defects. The company’s once promising partnership with GM also fell apart amidst these issues.