Nikola Corporation Files for Bankruptcy, Puts Assets on Sale

Nikola Corporation, a US developer zero-emissions transportation and energy supply and infrastructure solutions, has announced that the company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. It intends to continue certain limited directly provided (non-dealer) service and support operations for trucks currently in the field through the end of March 2025.

Thereafter, it will need one or more partners to support such activities.

The company says it 'intends to request authority from the Court to consummate a sale of its assets on a timeline that balances its liquidity needs with its significant prepetition marketing efforts to best position the Company to maximize value for its stakeholders'.

Nikola has been developing Class 8 vehicles, including battery-electric and hydrogen fuel cell electric trucks, and an energy brand, HYLA.

Steve Girsky, President and CEO of Nikola, says: “With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refueling highway, connecting Northern California to Southern California,”

Girsky adds: "Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate. In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”

Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona.