Troubled electric and hydrogen truck manufacturer Nikola has filed for Chapter 11 bankruptcy protection and is looking to sell off its assets.
Nikola has had a rough run, including the jailing of its former CEO Trevor Milton, who was sentenced to four years in prison in December 2023, and in December last year Nikola reported that it no longer had enough money to survive the next quarter and that it had only just managed to bring in an additional $US65 million through a deal with noteholders.
As a result, the company was forced to continue laying off employees, even after it had already laid off 15 per cent of its workforce in October.
Nikola also revealed last year that it had yet to pay $US80 million out of the $US125 million settlement over misleading shareholders – this, despite a court granting a $US165 million reimbursement from its convicted former CEO who lied to shareholders about the company’s technology.
Throwing the last of the dirt onto the company’s coffin was the news that it had to halt production of its hydrogen fuel cell semi-truck due to complaints that the fuel cell randomly shuts down. That had followed the 2023 recall of all 209 battery-powered trucks it had delivered which was prompted by fires involving the trucks at the company’s headquarters.
Last Wednesday in the US, the company announced that it had filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The company also filed a motion seeking authorisation to pursue an auction and sale of its assets.
Nikola also intends to continue some non-dealer service and support operations for trucks already in operation – including certain HYLA-branded fuelling operations – through the end of March 2025, after which the company said that it would “need one or more partners to support such activities.”
“Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refuelling highway, connecting Northern California to Southern California,” said Steve Girsky, President and CEO of Nikola.
“Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fuelling network has dispensed well over 330 metric tons of hydrogen.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate.
“In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”
Other EV start-ups to be forced to file for bankruptcy include Fisker, Canoo, Proterra, Volta Trucks, and Sono Motors.
Joshua S. Hill is a Melbourne-based journalist who has been writing about climate change, clean technology, and electric vehicles for over 15 years. He has been reporting on electric vehicles and clean technologies for Renew Economy and The Driven since 2012. His preferred mode of transport is his feet.