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Nikola Corporation, a U.S. electric truck manufacturer once valued at over $30 billion, has filed for bankruptcy protection in Delaware amid significant financial woes and a downturn in the electric vehicle industry. According to the company's filings, Nikola reported more than $1 billion in liabilities and approximately $47 million in available cash.
Founded by Trevor Milton in 2014, Nikola aimed to revolutionize the transportation sector with hydrogen and battery-powered trucks. However, the company faced severe scrutiny in 2020 following accusations of fraud, leading to Milton’s resignation and subsequent conviction for defrauding investors. He was sentenced to four years in prison and fined $1 million.
Steve Girsky, CEO of Nikola, attributed the bankruptcy to various market and macroeconomic challenges, stating that efforts to raise capital and reduce liability were insufficient to sustain operations. Although the company has sold hundreds of hydrogen-powered trucks since Milton's departure, its financial results revealed a staggering loss of $481 million in the nine months leading to September 2024.