Embattled EV maker Nikola files for Chapter 11 bankruptcy protection

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Last edited Wed Feb 19, 2025, 03:13 PM - Edit history (1)

Autos
Embattled EV maker Nikola files for Chapter 11 bankruptcy protection

Published Wed, Feb 19 20257:41 AM EST | Updated 5 Hours Ago

Michael Wayland
@MikeWayland

Key Points
• Nikola filed for bankruptcy protection after failing to secure a buyer or raise additional funds to maintain operations.
• The filing marks the finale of the company's yearslong fall from grace.
• Nikola's core products are all-electric and fuel cell electric semitrucks.
• At its peak in 2020, Nikola was valued more than Ford Motor at $30 billion, inked a multibillion-dollar deal with General Motors and was considered the pinnacle of auto startups.

DETROIT — Nikola Corp. — an auto startup that was once a favorite of Wall Street analysts and retail investors — filed for bankruptcy protection after failing to secure a buyer or raise additional funds to maintain operations. ... Nikola said Wednesday that it plans to pursue an auction and sale process of its assets, pending court approval. The company said it has approximately $47 million in cash to fund its bankruptcy activities, implement the sale process and exit Chapter 11.

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” Nikola CEO Steve Girsky said in a release. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”

The proposed bidding procedures, if approved by the court, would allow interested parties to submit binding offers to acquire Nikola’s assets, purchased free and clear of Nikola’s indebtedness and certain liabilities.

The filing marks the finale of the Phoenix-based company’s yearslong fall from grace. At its peak in 2020, Nikola was valued more than Ford Motor
at $30 billion, signed a multibillion-dollar deal with General Motors, and was considered the pinnacle of auto startups to go public through reverse mergers and special purpose acquisition companies.

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