Nikola Bankruptcy: What Went Wrong with the Electric Truck Maker?

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.

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Duck

Sarcastic remark goes here

29,109 messages 40,086 likes

I hope a lot of people got ripped off by this. I seriously do.

Because the only kind of people who would buy such nonsense are leftists. 😂

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389 Hood

Well-Known Member

5,329 messages 7,410 likes

Yes and no. What about greedy right-wing investors that hope to make a few bucks then bail when the market levels off.

The 'buy low, sell high' tactic. I did quite well this year following that mantra. Properly done and following the market religiously, you can turn $1000 into $10,000 in no time.

This is also the type of tactics that make the market swing so wildly.

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389 Hood

Well-Known Member

5,329 messages 7,410 likes

I don't trust any of this greenie crap. Tesla may have the upper hand, but one or two nuclear verdicts can put a hurting on companies such as these. Full automation in vehicles is still many years and many mistakes away from perfection.

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Electric Chicken

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27,574 messages 23,656 likes

I'm in for electric when it's practical without special government subsidies.

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krelithous

Well-Known Member

12,811 messages 4,740 likes

if there's subsidies involved it's either a scam or a flop. a business should become successful on it's business model and not govt handouts.

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krelithous

Well-Known Member

12,811 messages 4,740 likes

me to. any moron knows that there's no infrastructure all the loonies was doing was funneling money out!!! now there claiming that to much clean air causes climate change faster :rolllaugh3: 😀 🙄 :confused-96: :biglaugh::coocoo:. there crying because no one loves them any longer since we caught on to there bull.

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Electric Chicken

Well-Known Member

27,574 messages 23,656 likes

Exactly.

I'm not against the technology in and of itself, but it needs to be a viable, standalone, alternative to everything else on the market.

No government incentives. Just one guy deciding what his next truck will be.

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krelithous

Well-Known Member

12,811 messages 4,740 likes

it shouldn't be shoved down our throats. if one wants an electric then it should be optional. enough of this environmental terrorism. same thing with emissions trucks where do they all end up in a landfill somewhere. get rid of the emissions crapola and trucks will last longer get better fuel economy and be cheaper to repair...

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Duck

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29,109 messages 40,086 likes

I would 100% support a "nuclear verdict" against autonomous car manufacturer + owner + insurance companies when autonomous cars cause fatalities.

Autonomous vehicles shouldn't exist.

Except for specialized emergency responses into places too dangerous to send humans. Like in & out of a nuclear or volcanic disaster area.

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Rigjockey

In Gord we trust!

29,258 messages 30,104 likes

I used to have PPL on FB saying my job would be taken over by self-driving trucks. I was like, naw, that's like ten years away if I ever see it before I retire, and they would still need a "driver". And that was ten years ago.

Self-driving trucks are still ten years away and they will still need a "driver".

A yard jockeys' job is closer to being replaced by autonomous trucks but that would require a new building with the ability to open the doors from inside the building (they do exist) and who is going to hook up the airlines?
Yard jockey gets demoted to airline hooker upper personnel.

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Duck

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29,109 messages 40,086 likes

They have a machine called a "DaVinci Surgical Robot" that can slice open the skin of a grape and stitch it back closed.

It's what performed Sarah's hysterectomy.

I'm sure they can put robotic arms on the back of a robo-truck that can hook up the hoses.

Especially in Canada cuz robotic arms are kinda y'all's specialty, eh? 😁

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