Nikola Corporation, known for its all-electric and fuel cell electric semitrucks, has filed for Chapter 11 bankruptcy protection. The company, which began producing its core products in 2022, has faced significant hurdles, including a steep decline in its valuation and production output. Despite these challenges, CEO Steve Girsky remains optimistic about the company's future, indicating ongoing discussions with potential partners.
In 2020, Nikola stood as a beacon of promise in the automotive startup world. At its peak, the company was valued at over $30 billion, surpassing even Ford Motor. Nikola's ambitious plans were further bolstered by a multibillion-dollar deal with General Motors. However, its journey has been marred by controversies involving its founder and former CEO, Trevor Milton. Milton's tenure ended in scandal when he was convicted of wire fraud and securities fraud in 2022 for misleading investors about the company's operations and zero-emissions technology.
Nikola's path to becoming a public company was through a reverse merger with a Special Purpose Acquisition Company (SPAC) in June 2020. This route was popular among auto startups seeking public funding without the traditional initial public offering (IPO) process. However, the company's stock has struggled since December, trading under $2 per share. By the third quarter of the previous year, Nikola had produced only 600 vehicles since production began.
The arrival of Steve Girsky as CEO in 2023 marked an attempt to steer the company back on course. Under his leadership, Nikola reported $198 million in cash at the end of the third quarter but acknowledged that this would only sustain operations into the first quarter of 2025. Girsky remains committed to finding solutions, stating that they are "actively talking to lots of potential different partners who value what we do and value what we've built."
Despite these efforts, Nikola has not secured a buyer or raised additional funds to continue operations, leading to its bankruptcy filing. The company's capital has been dwindling since Girsky took over, adding pressure on management to find viable options for sustainability.