EV maker Nikola files for bankruptcy protection

Core Viewpoint - Nikola has filed for Chapter 11 bankruptcy protection due to various market and macroeconomic factors impacting its financial situation [1][2] Financial Situation - Nikola has $47 million in cash on hand to fund its operations during the bankruptcy process [3] - The company's stock has plummeted over 95%, from over $30 per share in early 2024 to around $0.70 [3] - Nikola reported a loss of nearly $200 million in the third quarter of 2023 and indicated it only had enough cash to operate until Q1 2025 [4][8] Business Operations - The company plans to continue its day-to-day operations during the bankruptcy process and has applied for authorization to sell its business [3][8] - Nikola shipped 90,000 trucks in the third quarter of 2024, a significant increase from 3,000 in the same quarter of 2023 [5] Historical Context - Nikola went public in June 2020 and reached a valuation of $34 billion before generating any revenue; its current market capitalization is $64 million [5] - The company has faced a long history of financial and operational challenges, including fraud allegations that led to investigations and the conviction of founder Trevor Milton [6][8] - Milton was sentenced to four years in prison in September 2023 and was ordered to pay nearly $168 million for misleading statements [7]