EV Truck Startup Nikola Files for Chapter 11 Bankruptcy

Core Insights - Electric vehicle startup Nikola (NKLA) has filed for Chapter 11 bankruptcy and intends to auction its assets, pending court approval [1][3] - The company has faced significant market and macroeconomic challenges that have impacted its operations, as stated by CEO Steve Girsky [1][2] - Recent efforts to raise capital have been insufficient to address these challenges [2] Company Background - Nikola went public in June 2020 without selling any trucks and at one point had a market capitalization higher than Ford Motor [2][3] - The company experienced a mass recall of its vehicles in 2023 and its founder, Trevor Milton, was sentenced to four years in prison for misleading investors [2][3] Financial Status - Nikola currently has approximately $47 million in cash to support its bankruptcy proceedings [3] - Following the bankruptcy announcement, Nikola's shares plummeted nearly 40% in intraday trading, dropping from $21.18 a year ago to about $0.47 [3]