Troubled electric truck maker Nikola files for bankruptcy

Core Viewpoint - Nikola Corp. has filed for Chapter 11 bankruptcy protection due to its inability to secure additional funding or find a buyer, marking a significant decline from its previous valuation of $30 billion in June 2020 [1][5]. Company Situation - Nikola plans to auction its assets pending court approval, as stated by the CEO, highlighting the impact of market and macroeconomic factors on its operations [2]. - The company has approximately $47 million in cash to fund its bankruptcy process and is allowing interested parties to submit binding offers for its assets, independent of its debts [3]. Assets and Developments - Key assets include Nikola's Class 8 hydrogen fuel cell electric trucks and battery electric truck platforms, along with plans for a hydrogen refueling highway in California [4]. - Nikola had previously engaged in a multi-billion dollar deal with General Motors, which was part of its rise as a notable SPAC success before facing significant challenges [5]. Legal and Financial Issues - The company's founder, Trevor Milton, faced accusations of fraud, leading to his conviction for wire and securities fraud in 2022, which severely impacted the company's reputation and stock value [6][7]. - Nikola has been attempting to raise capital to sustain operations, including a recent effort to raise $100 million through a common stock sale, as it warned investors about its cash flow limitations [8].