EV Vehicle Maker Nikola Files For Bankruptcy Protection: 'Our Very Best Efforts Have Not Been Enough'

Zero-emissions car company Nikola Corporation has filed for Chapter 11 bankruptcy protection but hopes to continue operating while it seeks a buyer.

"In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations," said Steve Girsky, President and CEO of Nikola. "Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders."

The company says it intends to continue service and support operations for trucks currently in the field through March. It says it will need one or more partners to continue support past then.

It asked the bankruptcy court for permission to pursue an auction and sale of its assets.

Nikola was a hot start-up but it became caught up in controversy and its founder was convicted of misleading investors, the Associated Press reported.

Trevor Milton was sentenced to four years in prison in 2023 after he was convicted of making up claims about the company's zero-emission trucks.

In 2020, the company was valued at around $30 billion. Now it is down to $47 million in cash on hand.