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Hydrogen galvanic trucking startup Nikola Corp. lodge forChapter 11 failure protectionWednesday after it failed to find a emptor or secure additional funds to maintain operations .
Nikola was once a Silicon Valley favorite , assess at $ 30 billion in June 2020 after itwent publicthrough a peculiar purpose accomplishment fusion . But a serial of scandals hem in its laminitis and former CEO Trevor Milton put the troupe into free dusk .
Now , Nikola plan to go to vendue with its assets , pending court approval , accord to a regulative filing .
“ Like other society in the electric vehicle industry , we have look various mart and macroeconomic divisor that have impacted our ability to operate , ” Steve Girsky , United States President and CEO of Nikola , said in a assertion .
“ In recent month , we have taken numerous actions to raise majuscule , keep down our liabilities , make clean up our balance sheet and save hard cash to sustain our operations . unluckily , our very near movement have not been enough to overcome these significant challenges , and the Board has specify that Chapter 11 represents the best possible path forrard under the fate for the Company and its stakeholder . ”
The company has about $ 47 million in cash on hired hand to fund its bankruptcy operation . Nikola ’s proposed bidding process would take into account interested parties to put forward binding offer to acquire Nikola ’s plus , self-governing of the company ’s debt or liability .
Some of those assets would include Nikola ’s Class 8 H fuel cadre electric motortruck and stamp battery galvanic truck platforms . Nikola had also been in the summons of educate a HYLA hydrogen refueling highway in California .
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The bankruptcy filing caps a yearslong unraveling . Nikola had been considered a golden example of a SPAC go powerful — and had even close a multibillion - dollar deal with General Motors — until Milton was accuse of fraud for making exaggerated claim about the ship’s company ’s electric hand truck applied science .
prosecuting officer in the case against Milton claimed that he had lead astray investor since 2019 by rest about Nikola having ramp up a hand truck from the “ ground up ” and developing bombardment that were actually bought elsewhere .
Then there was theinfamous Nikola selling videothat evidence a truck appearing to force back on its own power . In reality , it was turn over down a hill .
Nikola finally pay a$125 million penaltyin a settlement with the U.S. Securities and Exchange Commission . The company ’s stock burst , leave in serious losses for investors , as well as the company .
Nikola had been trying to raise enough Washington to uphold operations ever since . Most recently , in December 2024 , Nikola attempted toraise $ 100 millionin a plebeian stock sale to repay its debts and kindle equity , after warn investors the month before during its third - quarter lucre call that the company only had enough cash to support its patronage into Q1 2025 .
Nikola report $ 198 million in cash at the end of the third quarter .
