Electric truck manufacturer Nikola announced it had filed for Chapter 11 bankruptcy protection. The company will pursue a sale of its assets while fighting financial challenges.
The company, founded in 2015, is now looking to wind down operations as its market valuation has collapsed from $27 billion to under $50 million. For the past few years, Nikola braved several top management changes, plummeting share values, fraud allegations, a massive drop in demand, and recalls.
Nikola, like Fisker, Proterra, Canoo, and Lordstown Motors, went public during the pandemic on a wave of such listings and started delivering its first trucks in 2021. All five startups filed for bankruptcy in recent years, failing to revolutionize their sectors as originally planned.
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