Nikola has filed for Chapter 11 bankruptcy protection as it faces severe financial difficulties, exacerbated by founder Trevor Milton's conviction for misleading investors regarding the company’s technology. Once a promising startup with a valuation of $30 billion in 2020, Nikola has struggled to produce electric trucks at a sustainable scale, posting significant losses in consecutive quarters. The company, currently holding approximately $47 million in cash, plans to continue limited operations while seeking court approval to auction and potentially sell the business, acknowledging the harsh market conditions affecting the electric vehicle industry.
Nikola has filed for Chapter 11 bankruptcy after struggling financially and facing legal issues stemming from its founder's conviction for misleading investors about its technology.
CEO Steve Girsky highlighted the challenges faced by Nikola, citing market factors that have hindered operations and the ongoing need for funding to support limited service.
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