Electric Truck Maker Nikola Files for Bankruptcy and Plans Asset Sale

Once valued at $30 billion, Nikola seeks Chapter 11 protection following financial struggles, fraud scandals, and operational setbacks.

Nikola has filed for Chapter 11 bankruptcy in Delaware, citing financial difficulties and plans to sell its assets to settle liabilities.
The company reported assets valued between $500 million and $1 billion, while liabilities range from $1 billion to $10 billion.
Founder Trevor Milton was convicted of fraud in 2022 for misleading investors, contributing to the company’s decline in reputation and finances.
Nikola has produced only 600 vehicles since 2022, with recalls and operational challenges leading to significant financial losses.
The company will continue limited support operations for existing vehicles through March, pending court approval for its asset sale process.