Here's why Nikola stock just crashed 46%

Company Overview - Nikola (NASDAQ: NKLA) experienced a significant stock rally of over 40% on February 18, 2025, after Nomura Holdings increased its stake to 9.3% during Q4 [1] - However, the stock plummeted by 46.94% in pre-market trading on February 19, 2025, following the announcement of filing for Chapter 11 bankruptcy protection [2][3] - The company plans to continue limited operations while primarily seeking to sell its assets [3] Historical Context - Nikola has faced numerous challenges over the years, including lawsuits and a major scandal in 2016 involving a fake video of a working electric truck prototype [4] - The CEO, Steve Girsky, indicated that the company struggled due to market and macroeconomic factors affecting the entire electric vehicle (EV) industry [5] Industry Analysis - The EV industry has been experiencing a crisis, with companies like Rivian and Lucid Motors seeing stock declines of approximately 30% and 20% respectively over the past year [6] - Even Tesla, once the leading company in the sector, has been one of the worst-performing stocks in the S&P 500 index [7] - The situation may worsen in 2025 due to the new U.S. administration ending the previous EV mandate and the onset of a trade war that could disrupt various industries [8]