Nikola Corporation Has Filed for Bankruptcy
Zero-emissions transportation company Nikola has filed for bankruptcy protection under Chapter 11. They have stated they will almost certainly run out of cash this year! The company was focused primarily on EV trucks and brought Class 8 hydrogen fuel cell electric trucks to market in North America. They are also seeking authorization to go ahead with an auction and sale process.
According to PR Newswire, Nicola has filed a number of customary "first day" motions with the Court to ensure its limited operations are able to continue, including authorization to meet its obligations to employees during the sale process. Subject to Court approval, the Company intends to continue certain limited directly provided (non-dealer) service and support operations for trucks currently in the field, including certain HYLA fueling operations, through the end of March 2025. Thereafter, the Company will need one or more partners to support such activities.
"With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refueling highway, connecting Northern California to Southern California," said Steve Girsky, President and CEO of Nikola. "Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen. Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate. In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders."
