Nikola Files for Bankruptcy Amid EV Industry Struggles

Nikola Corporation, once a prominent player in the electric vehicle industry, has filed for Chapter 11 bankruptcy amid financial struggles exacerbated by tepid demand, rapid cash burn, and funding challenges. The company plans to auction its assets, valued between $500 million and $1 billion, to maximize value for stakeholders while continuing limited operations through March. Nikola's downfall mirrors a broader trend of EV startups, including Fisker and Lordstown Motors, facing similar challenges due to high interest rates and competition from affordable Chinese EVs. The company had previously faced scandals, including fraud allegations against its founder Trevor Milton, which contributed to its declining fortunes. Despite efforts to raise capital and reduce liabilities, the company's board determined that bankruptcy was the best path forward.