Nikola Corporation, once a leader in electric trucking, has filed for Chapter 11 bankruptcy as of February 19, 2025. The company faced financial and operational struggles for years. Now, it is looking to restructure its debts and sell off assets.
A Promising Start with Big Challenges
Nikola launched in 2014 with a bold vision: to revolutionize trucking with electric and hydrogen fuel-cell vehicles. The company attracted huge investments and, at its peak, was valued at nearly $30 billion. However, things quickly unraveled.
Founder Trevor Milton became a controversial figure. In 2022, he was convicted of fraud for misleading investors about Nikola’s technology. This severely damaged the company’s reputation and investor confidence.
Operationally, Nikola struggled to deliver on its promises. Despite ambitious plans, it only managed to deliver fewer than 400 trucks in 2024. Meanwhile, its cash reserves fell to just $47 million, far below what was needed to sustain operations.
The Bankruptcy Filing and Future Plans
Now, the company is in Chapter 11 bankruptcy protection. This means it will attempt to restructure debts while seeking buyers for its assets. Nikola plans to conduct an auction and sale process under court supervision.
CEO Steve Girsky acknowledged the company’s efforts to raise funds and reduce costs. However, he also admitted that Nikola still needs more financial support to continue operating.
What This Means for the EV Trucking Industry
Nikola’s bankruptcy highlights how tough the electric truck market can be. Competition is fierce, and developing new technology is expensive.
For new EV trucking startups, this serves as a warning. Success requires financial stability, transparency, and technological viability. Without these, even a promising company can collapse.