Nikola Corporation, a manufacturer of hydrogen-powered electric trucks, has filed for Chapter 11 bankruptcy on Feb. 19, after failing to secure funding or find a buyer.

Once valued at US$30 billion after its 2020 SPAC merger, Nikola faced a steep decline due to legal issues and reputational damage.

Founder Trevor Milton was convicted in 2022 of wire and securities fraud for misrepresenting the company’s technology.

The bankruptcy filing includes plans to auction Nikola’s assets, including its hydrogen fuel cell and battery-powered truck platforms, along with the Hyla hydrogen refueling highway project in California.

Nikola reported US$47 million in cash to finance the bankruptcy process, after a failed US$100 million stock sale in December 2024.

CEO Steve Girsky said that external economic challenges and financial issues made Chapter 11 the “best possible path.”

Nikola had US$198 million in cash in Q3 2024 but warned reserves would only last until early 2025.

This bankruptcy marks a major shift for Nikola, once seen as a key player in the EV sector.