From $30 Billion to Bankruptcy: The Rise and Fall of Nikola

Nikola, once valued at over $30 billion, has filed for Chapter 11 bankruptcy protection. The company, which produces all-electric and fuel cell electric semitrucks, failed to secure a buyer or raise additional funds. Nikola plans to auction its assets, with $47 million in cash to fund the process. At its peak in 2020, Nikola signed a deal with General Motors and was a leading auto startup. However, its downfall was marked by scandals, including the conviction of its founder Trevor Milton for fraud. Since 2022, Nikola has produced only 600 vehicles, many of which were recalled due to defects. The company’s stock has been trading under $2 per share since early December, a stark contrast to its all-time high of nearly $80 in June 2020.

Source: www.cnbc.com