Nikola Corporation has officially filed for Chapter 11 bankruptcy, marking the end of a tumultuous journey filled with big promises, financial struggles, and scandal. The company, which was once hailed as a revolutionary force in the electric truck industry and had been valued higher than Ford despite having no revenue, ultimately failed to secure enough investor confidence and cash flow to sustain its operations.
The Rise and Fall of Nikola
Founded in 2015 by Trevor Milton, Nikola aimed to disrupt the transportation industry with hydrogen and battery-electric semi-trucks. The company’s ambitious vision attracted major investors and a high-profile partnership with General Motors, which initially planned to provide technology and production support for Nikola’s hydrogen-powered vehicles. In June 2020, Nikola went public via a SPAC (special purpose acquisition company) merger, and its stock skyrocketed, at one point pushing the company’s market valuation to nearly $30 billion.
However, skepticism about Nikola’s technological capabilities began to grow. The company had yet to deliver a single working truck, and industry analysts started questioning whether its hydrogen-powered vision was viable. Then, in September 2020, short-selling firm Hindenburg Research released a scathing report accusing Nikola and its founder of fraud.
Trevor Milton’s Fraud Scandal
Hindenburg Research’s investigation alleged that Nikola misled investors about its technology, capabilities, and production timelines. The most damning revelation was that Nikola’s much-publicized demonstration of its hydrogen-powered truck was staged—the vehicle was not powered by its own technology but was instead rolling down a hill to create the illusion of movement.
Following the report, Nikola’s credibility crumbled, and Milton resigned as CEO. The fallout led to a federal investigation, and in 2022, he was convicted of fraud for misleading investors. He was later sentenced to four years in prison in 2023.
Struggles Leading to Bankruptcy
With Milton out and new leadership in place, Nikola attempted to pivot and rebuild trust. The company delivered its first battery-electric truck in late 2021, but its financial woes only deepened. Production costs remained high, demand was weaker than expected, and the company burned through cash at an alarming rate.
In 2023, Nikola suffered a major setback when several of its electric trucks caught fire, prompting a full recall and raising serious safety concerns. Despite attempting to ramp up production of its hydrogen-powered trucks in 2024, Nikola continued losing hundreds of thousands of dollars on each vehicle it sold.
By early 2025, Nikola’s cash reserves had dwindled to just $47 million, a fraction of what was needed to sustain operations. With stock prices plunging below $1 per share and no major investors stepping in to save it, the company officially filed for bankruptcy protection on Wednesday. Nikola said it plans to sell off its remaining assets, liquidate its operations, and wind down its business.
