EV truck maker Nikola files for bankruptcy
By Benjamin Chiou
Date: Wednesday 19 Feb 2025
(Sharecast News) - Heavy-duty electric truck maker Nikola Corporation has filed for Chapter 11 bankruptcy protection and intends to sell off its assets, the American firm announced on Wednesday.
The company, which operates the HYLA brand, said it is seeking court approval to pursue an auction and sale process under the US Bankruptcy Code.
Nikola is known for bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America.
"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," said chief executive Steve Girsky in a statement.
"In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. 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."
If approved, Nikola's proposed bidding procedures would allow interested parties to submit binding offers to acquire assets, "purchased free and clear of Nikola's indebtedness and certain liabilities", it said.
Shares were down 39% at 47 cents by 1124 in New York, valuing the company at just $39m. At its peak in 2020, Nikola was valued at around $30bn.
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