Nikola Files for Chapter 11 Bankruptcy, Seeks Asset Sale

Nikola Corp. has filed for Chapter 11 bankruptcy protection, seeking to auction its assets amid significant financial distress. The company, which once had a market value exceeding $30 billion, cited challenges such as tepid demand, high cash burn, and macroeconomic factors impacting operations. Nikola intends to continue limited operations, supporting existing hydrogen fuel cell electric trucks and fueling stations until the end of March while exploring partnerships for ongoing support. CEO Steve Girsky emphasized that despite efforts to stabilize the company, these challenges proved insurmountable. The bankruptcy filing lists Nikola's assets between $500 million and $1 billion, with liabilities estimated between $1 billion and $10 billion. This collapse follows a series of leadership changes and market pressures that have similarly affected other electric vehicle startups.