- Nikola has filed for chapter safety
- The corporate is looking for approval to promote remaining belongings
- The corporate was as soon as value greater than Ford through the EV startup growth
Nikola introduced on Wednesday that it has filed for Chapter 11 chapter safety, becoming a member of a rising record of extremely publicized EV startups which have confronted an identical destiny lately, together with Lordstown Motors, Fisker, and Canoo.
Based in 2014, Nikola acknowledged that it’s looking for approval for the sale of its belongings and can proceed working to help present prospects and sure hydrogen-fueling operations by the top of March. Amongst its belongings is roughly $47 million in money available.
Nikola has but to announce its This autumn 2024 monetary outcomes, however in a submitting final December, it reported a web lack of $481.2 million for the primary 9 months of that yr.
CEO Steve Girsky mentioned in an announcement that the corporate had tried to lift capital and cut back its debt in current months, however finally, the board decided that submitting for Chapter 11 chapter was the very best final result.
Nikola Badger
Nikola was as soon as thought-about one of many extra promising EV startups. Initially, the corporate targeted on battery-powered electrical vehicles earlier than transitioning to hydrogen gasoline cell electrical vehicles, together with a hydrogen fueling operation known as Hyla. There was additionally a partnership with Basic Motors that included a plan to construct a hydrogen pickup truck dubbed the Badger.
Nonetheless, issues took a flip for the more severe in 2020 when the DOJ and SEC started investigating Nikola over fraud allegations introduced by funding agency Hindenburg Analysis. Round that point, Nikola’s authentic CEO and founder, Trevor Milton, stepped down from the corporate. He was later discovered responsible of securities and wire fraud, leading to a four-year jail sentence, whereas the corporate reached a settlement with the SEC. Moreover, in 2023, the corporate confronted automobile fires and a subsequent recall.
Nikola’s present share worth values the corporate at lower than $50 million—a steep decline from the $27 billion valuation it held in 2020 through the EV startup growth, when it was valued greater than Ford.