Nikola Corp. Files Chapter 11 Bankruptcy
Nikola Corp. has filed for Chapter 11 bankruptcy protection in Delaware, marking the downfall of a once-prominent electric-vehicle startup, according to Bloomberg on February 19th, 2025. The company, which makes electric and hydrogen-powered semi-trucks, struggled with weak sales, cash shortages, and a collapsing stock price. Nikola reportedly listed assets between $500 million and $1 billion, with liabilities ranging from $1 billion to $10 billion.
The company’s troubles began after its founder was found to have allegedly exaggerated its technology, leading to his reported conviction on fraud charges. Since then, Nikola has faced leadership changes, product recalls, and financial difficulties. The company’s CEO had reportedly been attempting to raise capital or find alternatives before the bankruptcy.
Nikola’s bankruptcy follows similar struggles in the EV sector, with companies like Fisker and Canoo also filing for bankruptcy amid high costs and weak consumer demand. Nikola reportedly plans to liquidate its assets and has $47 million in cash on hand. Its stock, once valued at $29 billion, had plummeted to under $100 million before the filing.
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Last modified: February 19, 2025
