Electric vehicle maker Nikola Corp. has filed for Chapter 11 bankruptcy protection after failing to secure a buyer or additional funds to continue operations.
The Phoenix-based company plans to pursue an auction and sale of its assets, pending court approval, with $47 million available to support the process.
“Nikola faced significant market and macroeconomic challenges that we could not overcome,” said CEO Steve Girsky. Founded in 2015, Nikola was once valued at $30 billion, surpassing Ford, and partnered with General Motors. However, its reputation suffered after founder Trevor Milton was convicted of fraud in 2022 for misleading investors.
Despite launching electric and fuel cell trucks in 2022, Nikola produced only 600 vehicles, with recalls costing millions. With limited cash and dwindling capital, the company could no longer sustain operations. For more information, visit www.nikolamotor.com.
