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Nikola Corporation, once valued at over $30 billion, has filed for bankruptcy in Delaware, citing more than $1 billion in liabilities. The company, which produces hydrogen fuel and battery-powered trucks, has struggled in the wake of serious allegations against its founder, Trevor Milton, who was convicted of fraud and sentenced to four years in prison last December, alongside a $1 million fine for misleading investors.
According to CEO Steve Girsky, the decline in demand for electric vehicles has exacerbated the company's financial woes. Girsky stated the firm has taken many steps to stabilize operations, but “our very best efforts have not been enough.” Nikola's financial difficulties are further highlighted by a report showing losses of $481 million in the nine months ending September 2024.
Milton's departure from the company in 2021 followed a damning report by short-sellers that claimed Nikola misled investors about its technological capabilities, ultimately revealing that a promotional video was fabricated.