Electric and hydrogen truck maker Nikola, once expected to be a “second Tesla,” eventually filed for bankruptcy protection in court after suffering financial difficulties.
Nikola filed a relief petition in bankruptcy court in Delaware under Chapter 11 of the Bankruptcy Act, and also filed a request for approval to proceed with the process of auctioning and selling assets under Section 363 of the Bankruptcy Act.
“We’ve taken a lot of steps in recent months to increase capital and reduce debt, but unfortunately it hasn’t been enough to overcome any major challenges,” Chief Executive Steve Gersky said.
Nikola, founded in 2015, has drawn attention as the second Tesla in its electric and hydrogen truck production plan, and its listing on the New York Stock Exchange in 2020 sent shares soaring that once exceeded Ford Motor’s market cap.
But Hindenburg Research, known for its “activist short selling” investment firm, sparked controversy in a promotional video from Nikola, saying the driving scene of the hydrogen electric truck was filmed on a downhill road.
After the report was published, Nikola was investigated by U.S. securities and law enforcement, with its founder, Trevor Milton, sentenced to four years in prison for fraud that duped investors with unfinished technology.
Since then, management has been replaced in 2023, trying to innovate but failing to make a comeback due to a slump in the EV market.
JENNIFER KIM
US ASIA JOURNAL
