Source: Reuters
“Nikola said on Wednesday it had filed for Chapter 11 bankruptcy protection and would pursue a sale of all or most of its assets, after grappling with rapid cash burn and struggling to raise funds in the past few quarters. The development brings a close to a challenging journey, which included numerous leadership changes, choppy sales and a plummeting share value. EV firms that went public during the pandemic, promising to revolutionize the sector, such as Fisker, Proterra and Lordstown Motors have filed for bankruptcy in recent years as funding for the capital-intensive operations dried up due to high interest rates and flagging demand. Nikola said it decided to initiate a sale process of its assets to maximize value and ensure an orderly wind down.” (02/19/25)