Nikola Corp., once a so-called rising star in the electric vehicle (EV) world that media said was going to disrupt Tesla, has filed for bankruptcy protection after failing to secure a buyer or raise enough money to keep running.
The company announced on Wednesday that it will try to sell off its assets through an auction, pending court approval. Right now, Nikola has about $47 million in cash, which it will use to fund the bankruptcy process and finalize the sale of its remaining assets, reports CNBC.
Nikola was once seen as the future of zero-emissions trucking. In 2020, it was worth more than Ford, had a major deal with General Motors, and was hyped as one of the biggest auto startups. But things quickly fell apart in dramatic fashion.
The biggest hit came when Nikola’s founder, Trevor Milton, was exposed for misleading investors about the company’s technology. Short-selling firm, Hindenburg Research, accused Nikola of faking demonstrations of its hydrogen-powered trucks, among other claims (like trucks rolling down a hill and not actually driving). Milton was convicted of fraud in 2022.
Meanwhile, the company’s actual production of electric semitrucks has been slow. Since launching in 2022, Nikola has only built 600 trucks, and many of them were recalled due to safety issues, costing the company millions.
Despite efforts to push forward, Nikola simply ran out of money. The company previously warned investors that it could only survive until early 2025 without additional funding.
Now, the company’s assets will likely be sold off, and Nikola’s once-promising future appears to be coming to an end. Sometimes, you just have to question the hype and Nikola was exposed big time.
