EV maker Nikola files for Chapter 11 bankruptcy protection

Published On Feb 19, 2025, 8:26 AM

Nikola Corporation, the electric vehicle maker, has filed for Chapter 11 bankruptcy protection due to severe market and macroeconomic pressures that hindered its operations. The CEO stated that despite efforts to raise capital and reduce liabilities, the challenges were insurmountable. Nikola aims to sell off assets quickly to manage cash flow during the bankruptcy process. The company has around $47 million in cash but has faced significant losses and recalls in recent years, contributing to a sharp decline in its stock value, which has dropped over 70% this year.