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Electric-truck maker Nikola files for Chapter 11 bankruptcy protection

Nikola said Wednesday it had filed for Chapter 11 bankruptcy protection and would pursue a sale of all or most of its assets, after grappling with rapid cash burn and struggling to raise funds in the past few quarters.

EV firms that went public during the pandemic, promising to revolutionize the sector, such as Fisker, Proterra and Lordstown Motors have filed for bankruptcy in recent years as funding for the capital-intensive operations dried up due to high interest rates and flagging demand. Prosecutors in the US Attorney’s Office in the Southern District of New York had accused Milton of making false and misleading statements about “nearly all aspects of the business” as it pertained to developing electric and hydrogen-powered trucks, as well as defrauding the public through social media and podcast interviews. Fleet operators have been hesitant to spend on setting up charging stations and inducting electric trucks, as high interest rates pinched budgets, hurting companies such as Nikola.

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