Nikola Corp. files for Chapter 11 bankruptcy

Zero-emissions vehicle maker Nikola Corp. has filed for Chapter 11 bankruptcy protection and is seeking to sell its assets through a court-supervised auction.

The Arizona-based company said it has about US$47 million in cash on hand to fund limited operations, support its asset sale process and wind down its business. It has also filed motions to continue meeting obligations to employees and provide limited service for trucks currently in operation until March 2025.

“With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward,” said CEO Steve Girsky in a statement. “Unfortunately, our very best efforts have not been enough to overcome these significant challenges.”

Nikola cited market conditions and macroeconomic factors affecting the electric vehicle sector as reasons for the filing. The proposed sale process will allow interested buyers to submit binding offers for the company’s assets, subject to court approval.

The company, which produces hydrogen fuel cell and battery-electric trucks, has been developing a hydrogen refueling network under its HYLA brand.

Nikola’s bankruptcy case is being handled in the U.S. Bankruptcy Court for the District of Delaware.