On February 19, 2025, Nikola Corporation, a leading name in electric semi trucks, filed for Chapter 11 bankruptcy.
Why it matters: Nikola's move is a major jolt to the zero-emissions trucking industry. Despite their efforts to remain solvent, economic challenges forced this decision.
- Nikola had invested heavily in hydrogen fuel cell electric trucks, even launching a hydrogen refueling highway to connect California cities.
- The company covered over 3.3 million fleet miles and dispensed more than 330 metric tons of hydrogen.
The backstory: Nikola faced scrutiny in 2021 when the SEC accused them of misleading investors over a prototype truck video. They settled without admitting wrongdoing. The founder, Trevor Milton, later resigned and faced legal troubles.
What's next: Nikola aims to conduct a structured asset sale process to maximize value. They have about $47 million in cash to support ongoing operations during this process according to an official Nikola press release.
Impact: Until March 2025, Nikola will maintain some operations to support existing trucks in the field, but will need partners afterward for ongoing service.
This strategic shift is crucial as the company navigates through financial turbulence while hoping to find a viable path forward.