lectric vehicle manufacturer Nikola has filed for Chapter 11 bankruptcy protection, marking a dramatic downfall for the once-promising EV startup that was once hailed as a disruptor in the industry.
The Arizona-based company filed for bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and has requested court approval to pursue an auction and sale of its business.
Nikola’s troubles began in 2022 when its founder was convicted of misleading investors about the company’s capabilities. The scandal led to a collapse in investor confidence, severely impacting Nikola’s ability to compete in the highly competitive EV market.
The company has announced plans to continue limited service and support operations for its existing vehicles, including certain HYLA hydrogen fueling operations, until the end of March 2025, subject to court approval. However, Nikola stated that it will require one or more partners to sustain these operations beyond that period.
Nikola’s bankruptcy marks another setback for the EV sector, which has faced challenges such as supply chain disruptions, increasing competition, and wavering investor confidence.
The company’s future now hinges on the court-supervised auction process, as potential buyers or investors evaluate whether Nikola’s technology, assets, and infrastructure can be salvaged.