Nikola, the electric vehicle start-up that aimed to be the Tesla of heavy trucks, has filed for bankruptcy protection. Founded in 2015, the company promised hydrogen and electric-powered long-haul semi trucks and went public in 2020 without delivering any vehicles. The company faced skepticism and fraud accusations, leading to the resignation of founder Trevor Milton.
Nikola recently began delivering electric trucks, but insufficient numbers caused financial struggles. With $47 million in cash and debts totaling $1 to $10 billion, the company intends to sell assets and cease operations. Similar companies like Lordstown Motors and Arrival have also faced bankruptcy challenges.
Rivian, making electric pickups, has struggled with production targets while Lucid Motors has struggled to meet sales goals. Both companies are exploring partnerships and deals to survive. Despite industry challenges, some electric vehicle start-ups continue operating, albeit with declining share prices.
Nikola’s troubles began when Hindenburg Research alleged the company exaggerated its technology achievements. This led to Trevor Milton’s resignation and later conviction on fraud charges. Despite leadership changes, Nikola was unable to overcome challenges and eventually filed for bankruptcy.
Other companies like Rivian and Lucid Motors are experiencing production and financial struggles as well. However, partnerships and deals with larger automakers could provide a lifeline for these companies. The electric vehicle industry remains fraught with challenges, but some companies are striving to survive and thrive in a competitive market.
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