Due to the challenges in the electric vehicle industry and a decline in demand, an American electric truck company has announced its bankruptcy. Nikola Corporation, the company in question, revealed plans to sell its assets.
Nikola files for bankruptcy after the crisis in the electric vehicle sector
Nikola, initially focused on producing battery-powered trucks but in recent years shifting towards hydrogen fuel cell trucks, stated that it couldn’t withstand the “market and macroeconomic factors” that negatively impacted its operations. The official statement came from CEO Steve Girsky.
Nikola’s bankruptcy reflects the increasing borrowing costs and weakening customer demand in the electric vehicle industry. Many startups that were once believed to revolutionize the industry, such as Fisker, Proterra, and Lordstown Motors, have also filed for bankruptcy.
Nikola, which delivered its first vehicle at the end of 2021, had accelerated hydrogen fuel cell truck production in 2024. However, the company incurred losses in every sale due to insufficient demand from fleet operators to switch to electric trucks.
The company’s financial troubles worsened after a series of fire incidents in its electric trucks in 2023, leading to the recall of all vehicles and increased safety concerns.
In 2020, Nikola’s market value exceeded $27 billion, surpassing even Ford Motor, but its stock has now lost approximately 38% of its value, bringing its market value below $50 million.
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