The American electric truck company Nikola has filed for Chapter 11 bankruptcy, marking the latest collapse in the struggling electric vehicle (EV) industry.
Around 1,000 employees are expected to lose their jobs as the company winds down operations and seeks a buyer for its remaining assets.
From Market Darling to Bankruptcy
Founded with ambitious plans to revolutionize trucking using hydrogen and battery-electric technology, Nikola once had a market valuation of $27 billion in 2020, surpassing even Ford — despite having never sold a single vehicle at the time.
The company secured a billion-dollar partnership with GM, which was supposed to supply battery and hydrogen technology for Nikola’s high-performance Badger pickup truck.
But the vehicle never progressed beyond the prototype stage.
According to court filings, Nikola’s debt is estimated between $1 billion and $10 billion, while its assets are valued between $500 million and $1 billion. This was reported by Reuters.
CEO Steve Girsky cited "market and macroeconomic challenges" as key reasons for the company’s failure.
While Nikola did manage to get some of its electric trucks on American roads, the company struggled with serious technical issues, including multiple truck fires.
Scandals and Fraud Charges
Nikola’s downfall was accelerated by a major fraud scandal involving its founder, Trevor Milton, who was convicted of misleading investors.
One of the most infamous incidents involved a fake promotional video, in which a Nikola truck appeared to be driving itself — when in reality, it was rolling downhill. Milton also falsely claimed that the truck was closer to mass production than it actually was.
Nikola is the latest in a string of bankruptcies in the EV and clean energy sector.
Other companies like Fisker, Proterra, and Lordstown Motors have already shut down, and more automakers and suppliers are announcing major cost-cutting measures.
