Nikola’s Shocking Fall: EV Giant Files for Chapter 11 Bankruptcy – What Went Wrong?
The once-promising electric truck manufacturer Nikola has officially hit rock bottom. On Wednesday, the company filed for Chapter 11 bankruptcy protection, marking the end of a turbulent journey filled with scandals, leadership changes, and financial struggles. Now, Nikola is looking to sell off all or most of its assets in a last-ditch effort to salvage whatever remains.
From Industry Disruptor to Bankruptcy Court
Nikola was once hailed as the future of electric and hydrogen-powered trucking. Founded over a decade ago, the Phoenix-based company surged into the public eye when it went public in June 2020. Investors were captivated by its bold vision to revolutionize the trucking industry. However, the company’s meteoric rise was short-lived.
Over the past few years, Nikola has faced a perfect storm of challenges. Struggling to raise funds, burning through cash at an alarming rate, and facing plummeting stock prices, the company failed to maintain momentum. This collapse mirrors the downfall of other EV startups like Fisker, Proterra, and Lordstown Motors, which also filed for bankruptcy after struggling to secure funding amid high interest rates and dwindling demand.
Fraud, Deception, and the Fall of a Visionary
Nikola’s troubles were further exacerbated by its scandalous history. The company’s founder, Trevor Milton, was convicted of securities and wire fraud in 2022 after prosecutors exposed his web of lies. Milton had made false claims about Nikola’s cutting-edge technology, including the now-infamous promotional video where a Nikola One prototype was deceptively filmed rolling down a hill, creating the illusion that it was fully functional.
Despite these controversies, Nikola pressed on, replacing multiple CEOs in a desperate attempt to turn things around. In August 2023, industry veteran Stephen Girsky, a former General Motors executive, stepped in as the fourth CEO in four years. But even his leadership couldn’t save Nikola from financial ruin.
Why Nikola Collapsed
Nikola ramped up production of its hydrogen-powered fuel-cell electric trucks in 2024, but the company was bleeding cash. With each vehicle sale, it continued to lose hundreds of thousands of dollars. Meanwhile, fleet operators hesitated to invest in electric truck infrastructure due to high costs and economic uncertainty.
As its financial struggles deepened, Nikola reported assets between $500 million and $1 billion while its liabilities ballooned to between $1 billion and $10 billion. The company has now initiated a formal sale process, hoping to maximize value and ensure an orderly wind-down.
What’s Next?
For now, Nikola will continue limited operations for existing trucks and hydrogen-fueling services until the end of March. But this marks the end of the road for a company that once had the potential to be an EV powerhouse.
With its bankruptcy filing, Nikola becomes yet another cautionary tale in the high-stakes world of electric vehicle startups. The EV revolution is still happening—but for Nikola, it’s game over.
