Embattled EV maker Nikola files for Chapter 11 bankruptcy protection

Company Overview - Nikola Corp. has filed for bankruptcy protection after failing to secure a buyer or raise additional funds to maintain operations [1] - The company, once valued at over $30 billion, has seen a significant decline from its peak in 2020 when it was considered a leading auto startup [2] Downfall Factors - The downfall of Nikola has been attributed to scandals involving its founder Trevor Milton, who was convicted of wire fraud and securities fraud in 2022 [3] - Controversies surrounding the company were initially highlighted by short-seller Hindenburg Research following a multibillion-dollar deal with General Motors [3] Product and Production Challenges - Nikola's core products include all-electric and fuel cell electric semitrucks, with production starting in 2022; however, only 600 vehicles have been produced, many of which faced recalls due to defects [4] - The company has incurred tens of millions of dollars in costs related to these recalls [4] Financial Status - Nikola reported having $198 million in cash at the end of the third quarter, warning that it only has enough funds to support operations into the first quarter of 2025 [5] - The stock has been trading under $2 per share since early December, a significant drop from an all-time closing price of nearly $80 in June 2020 [6] Leadership and Future Prospects - Steve Girsky, who transitioned from chairman to CEO in 2023, is focused on moving the company forward despite dwindling capital [4] - Girsky has indicated that Nikola is actively seeking partnerships to enhance its business prospects [5]