Nikola, an electric vehicle start-up that aimed to become a leader in heavy trucks, filed for bankruptcy protection on Wednesday. Founded in 2015, the company promised hydrogen and electric-powered long-haul semi trucks and went public in 2020 before selling any vehicles. Its stock price initially surged, driven by investor enthusiasm, making its founder Trevor Milton and early investors wealthy. However, doubts soon emerged about the company’s technology and customer orders, leading to Milton’s ousting and later conviction on fraud charges. Despite delivering a small number of electric trucks recently, Nikola struggled to generate profits. By late last year, it had $200 million in cash against $270 million in long-term debt. Reports of its financial troubles caused its stock to plummet in February. The bankruptcy filing lists liabilities between $1 billion and $10 billion, with 1,000 to 5,000 creditors. Nikola plans to continue limited service for existing trucks with $47 million in remaining cash. The company is among several electric vehicle startups that have faced challenges in scaling production. — news from The New York Times
