Troubled electric truck maker Nikola files for bankruptcy

Hydrogen Electronic Tracking Startup Filed Nicola Corporation Chapter 11 Dealia Protection Wednesday it failed to find any buyer or to secure additional funds to maintain the operation.

Nicola was once Silicon Valley Darling, then $ 1 billion was worth $ 1 billion in June 2021. Became public Through consolidation of acquisition of a particular purpose. However, its founder and former chief executive officer Trevor Milton surrounded the multiple scandals.

According to a controller filing, Nicola now planned to go to auction with his assets, pending for the approval of the court.

“Like other electric vehicles, we face various markets and macroeconomic factors that have influenced our management capacity,” Nicola president and CEO Steve Girsky said in a statement.

“In recent months, we have taken numerous steps to raise capital, reduce our liability, clean our balance sheet and maintain our activities to maintain our activities. Unfortunately, our very good efforts were not enough to overcome these significant challenges, and the board has determined that Chapter 11 presents the best possible way to move forward for the organization and its partners. “

The company has about $ 47 million cash in the hands of the bank to fund the bankruptcy. Nicola’s proposed bidding process will allow the interested parties to submit binding offers to acquire Nicola’s assets, separate from the company’s debt or responsibility.

Some of these assets include Nicola Class 8 Hydrogen Fuel Cell Electric Trucks and Battery Inverter Truck Platform. Nicola was in the process of developing a hayla hydrogen refueling highway in California.

The bankruptcy caps of the bankruptcy are blocked for a year. Nicola was considered as a golden example of going to the right of a spack and even off the contract with General Motors several million dollars. Until Milton was accused of fraudulent claims about the company’s electrical truck technology.

Prosecutors of the case against Milton claimed that Nicola created a truck from the “Ground Up” and lying about the development of battery purchased elsewhere, he had deceived investors since 2019.

Was then The infamous Nicola marketing video It shows that a truck is present to drive in its own energy. In reality, it was rotating down a hill.

Following this video, a report by the short salesman Hindenberg Research called the company a fraud and Milton resigned in September 2021. In 2022, he was found guilty of a cable and security fraud. He is currently on bail while he is applying for Four -yearThe

Nicola finally paid the money $ 125 million fine A settlement with the US Security and Exchange Commission. The stock of the company’s stock is broken, causing serious damage to investors as well as the agency.

Nicola has been trying to increase adequate capital to continue the operation since then. Very recently, in December 2024, Nicola tried Increase $ 100 million After warning investors during the third-third income call, in case of sale of a common stock to repay its debs and equity, the company only had enough cash to support its business in Q1 2025.

Nicola reported 198 million as cash at the end of the third quarter.