Nikola’s E VT ruck venture faces Chapter 11 Bankruptcy proceedings

Electric vehicle startup Nikola ( NKLA ) filed for Chapter 11. The company declared bankruptcy and intends to hold an auction of its assets until court grants permission 1.

The hydrogen truck producer and the EV The industry as a whole has confronted various market and consumer challenges Macroeconomic factors That influenced the company’s operations Chief Executive Office Steve Girsky said

He mentioned that there have been recent initiatives to boost the number of children Capital The challenges faced by Nikola have not been resolved despite efforts to sustain operations. ”

Bankruptcy Follows Nikola’s Dramatic Rise

Nikola’s bankruptcy filing is the culmination of a Dramatic few years The company Went public In June 2020 without selling a single truck and at one point reached a higher Market cap Than Ford Motor ( F ) 2. Then came a mass recall of its vehicles in 2023 and afour-year prison sentence for founder Trevor Milton later that year on charges of misleading investors 3. 4.

The company said it has roughly $47 million in cash on hand to support its bankruptcy activities. If an auction is approved by the court, parties will be able to submit bids to acquire Nikola’s assets.  

Shares of Nikoka tanked nearly 40% intraday Wednesday. The stock has dropped from $21.18 a year ago to about 47 cents.