Electric vehicle start-up Nikola has filed for bankruptcy protection after failing to deliver on its promise to develop long-haul semi trucks powered by hydrogen and electricity. Founded in 2015, the company listed itself on the stock exchange in 2020 before selling any vehicles, causing its share price to briefly surge.
The company’s founder, Trevor Milton, had made claims about the company’s technology and orders that were later found to be false, leading to his resignation and conviction on fraud charges. Despite beginning to deliver small numbers of electric trucks, Nikola struggled to make money and had a substantial amount of debt.
With only $47 million in cash on hand, Nikola intends to continue limited service and support for trucks on the road as it goes through the bankruptcy process. The company, which has liabilities of $1 billion to $10 billion, plans to sell many or all of its assets and wind down its operations.
Nikola is one of several electric vehicle start-ups that have faced challenges in turning their ideas into actual vehicles. Companies like Lordstown Motors and Canoo have also sought bankruptcy protection, while Rivian and Lucid Motors have seen their share prices drop as they navigate production and sales issues.
With the bankruptcy filing, Nikola’s future is uncertain as it struggles to overcome significant challenges. Despite efforts to establish itself as a player in the electric vehicle industry, the company’s failure to deliver on its promises has led to its downfall.
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