Nikola Files for Chapter 11 Bankruptcy, Shares Crash 38%

Nikola Corporation has filed for Chapter 11 bankruptcy protection, marking a significant downturn for the electric and hydrogen truck manufacturer, which has seen its stock value decline by 97% over the past year. The company plans to liquidate its assets, with estimated liabilities ranging from $1 billion to $10 billion, and is entering the bankruptcy process with $47 million in cash to fund ongoing operations. CEO Steve Girsky cited various market challenges and a history of leadership changes, including the fraud conviction of founder Trevor Milton, as factors contributing to their financial struggles. Nikola will continue supporting some operations through March 2025, while seeking buyers for its assets. This bankruptcy highlights broader issues within the EV sector, where other startups have also struggled amid high interest rates and dwindling cash reserves. The company's stock fell nearly 50% following the announcement, reflecting investor concerns over its future viability.