The once highly valued U.S. electric and hydrogen truck maker Nikola has filed for Chapter 11 creditor protection and is thus facing liquidation. According to company information, liquidity has fallen to $47 million, while debts and lease liabilities exceed $350 million. Furthermore, the business generated only $64 million in revenue in the first three quarters of 2024.
Founded by Trevor Milton, who was later convicted of securities fraud, Nikola went public via SPAC merger in 2020 and reached a market capitalization of nearly $30 billion amid the hype — almost on par with Ford. However, technical and organizational issues prevented the desired mass production of hydrogen and electric trucks: In 2024, Nikola was able to deliver fewer than 400 vehicles. Meanwhile, the development consumed hundreds of millions of dollars annually.
Like other EV manufacturers, we are affected by difficult market and macroeconomic factors," explained CEO Steve Girsky, who originally facilitated Nikola's stock market launch with his blank-check company. Now, a bankruptcy court in Delaware is supposed to oversee the management of intellectual property and the liquidation of remaining assets. On the stock exchange, the share price fell by 39.1 percent on Wednesday, corresponding to a residual valuation of only 39 million USD. Nikola joins the list of young electric start-ups such as Fisker, Arrival, and Lordstown Motors that had to file for bankruptcy in recent months.
