Electric Truck Maker Nikola Files for Chapter 11 Bankruptcy

Electric vehicle manufacturer Nikola has filed for Chapter 11 bankruptcy protection, citing financial difficulties, rapid cash depletion, and an inability to secure sufficient funding. The company announced on Wednesday that it would pursue the sale of most or all of its assets as part of an effort to wind down operations in an orderly manner.

The bankruptcy filing marks the end of a turbulent period for the Arizona-based company, which has faced leadership upheavals, inconsistent sales, and a significant decline in its stock value. Nikola joins other electric vehicle startups, including Fisker, Proterra, and Lordstown Motors, that have collapsed in recent years due to dwindling investor interest, high operational costs, and rising interest rates.

Despite the bankruptcy, Nikola stated that it would continue supporting trucks currently in service and maintain some hydrogen-fueling operations until the end of March. The company reported assets valued between $500 million and $1 billion, while its liabilities were estimated at between $1 billion and $10 billion.

Founded more than a decade ago, Nikola went public in June 2020 and delivered its first vehicle in December 2021. However, its reputation was severely damaged when its founder, Trevor Milton, was convicted in 2022 of securities fraud and wire fraud. U.S. prosecutors accused Milton of misleading investors about the company’s electric and hydrogen-powered truck technology.

One of the most notable allegations involved a prototype of Nikola’s hydrogen-powered semi-truck, the Nikola One. Prosecutors said Milton falsely claimed the vehicle was fully operational, despite it lacking essential components such as motors and a control system. A promotional video further misrepresented the truck’s capabilities, as it was filmed rolling downhill after being towed to the top of an incline.

Milton was sentenced to four years in prison in 2023 for defrauding investors. Following his departure, the company experienced frequent leadership changes, with Stephen Girsky, a former General Motors executive, taking over as CEO in August 2023—the fourth in four years.

Nikola ramped up production of hydrogen-powered fuel-cell electric trucks in 2024, but financial struggles persisted. The company faced mounting losses on every vehicle sold, and fleet operators were reluctant to invest in electric trucks due to the high cost of charging infrastructure and constrained budgets.

With its bankruptcy filing, Nikola becomes the latest casualty in the electric vehicle industry’s struggle to sustain growth amid shifting economic conditions.