Struggling e-truck maker Nikola files for Chapter 11 bankruptcy protection (updated)

Nikola

19/02/2025 12:37

(Adds background and details from court filing in paragraphs
2-6)
       Feb 19 (Reuters) - Nikola  NKLA.O  filed for Chapter 11
bankruptcy protection, according to a court filing on Wednesday,
as the electric truck maker battled rapid cash burn and
struggled to raise additional funds amid uncertain demand for
its hydrogen and battery-powered big rigs.
    The development brings a close to Nikola's challenging
journey, which included numerous leadership changes, struggling
electric truck sales and a plummeting share value.
    The company listed assets of between $500 million and $1
billion, and estimated its liabilities were between $1 billion
and $10 billion, according to the court filing.
    Phoenix, Arizona-based Nikola was founded more than a decade
ago. It went public in June 2020 and delivered its first vehicle
in December of the following year.
    Nikola ramped up production of its hydrogen-powered
fuel-cell electric trucks in 2024. But the company struggled to
raise funding and its cash balance dwindled as it continued to
lose hundreds of thousands of dollars for every vehicle sold.
    Fleet operators have been hesitant to spend on setting up
charging stations and inducting electric trucks, as high
interest rates pinched budgets, hurting companies such as
Nikola.

 (Reporting by Akash Sriram in Bengaluru; Editing by Savio
D'Souza)
 ((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti;
+91-99017-77617;))