Nikola Corp Files for Bankruptcy Protection After Financial Downfall
Nikola Corp., an auto startup that was once favored by Wall Street analysts and retail investors, has filed for bankruptcy protection after failing to secure a buyer or raise additional funds to maintain operations.
This filing marks the finale of the Phoenix-based company's yearslong fall from grace. At its peak in 2020, Nikola was valued at more than Ford Motor at USD 30 billion, inked a multibillion-dollar deal with General Motors, and was considered the pinnacle of auto startups to go public through reverse mergers and special purpose acquisition companies.
The company's downfall has unfolded over the years, ignited by scandals and lies involving its founder and former CEO and chairman, Trevor Milton. The fast-talking, energetic, and now disgraced executive was convicted of wire fraud and securities fraud in 2022 for misleading investors about Nikola's operations and zero-emissions technology.
