DETROIT —
Nikola Corp.







— once a darling among Wall Street and retail investors — has filed for bankruptcy protection after being unable to find a buyer or secure additional funding necessary to sustain its operations.

On Wednesday, Nikola announced its intent to initiate an auction and sales process for its assets, pending court approval. The company currently holds approximately $47 million in cash, which will support its bankruptcy proceedings, facilitate the sales process, and assist in exiting Chapter 11.

“Like many in the electric vehicle sector, we’ve encountered a range of market and macroeconomic challenges impacting our operations,” said Nikola CEO Steve Girsky in a statement. “Despite our best efforts, we have been unable to navigate these substantial difficulties, and the Board believes that Chapter 11 is the most viable way forward for the Company and its stakeholders.”

If the court approves the proposed bidding procedures, interested buyers will be able to submit binding proposals to acquire Nikola’s assets, free of its debts and certain liabilities.

This filing marks the end of a tumultuous journey for the Phoenix-based company. At its height in 2020, Nikola was valued at over
Ford Motor







, reaching a valuation of $30 billion, and striking a multibillion-dollar deal with
General Motors







, establishing itself as a standout in the realm of auto startups that went public via reverse mergers and SPACs.

The company’s decline has been gradual, marked by scandals and deceit involving its founder and former CEO Trevor Milton. The charismatic and controversial executive was convicted of wire fraud and securities fraud in 2022 for misleading investors regarding Nikola’s operations and its zero-emissions technology.

The initial allegations were brought to light by short-seller Hindenburg Research following the partnership with GM, which involved the automaker acquiring a $2 billion stake in Nikola.

Nikola specializes in all-electric and hydrogen fuel cell semi-trucks, having commenced production in 2022. By the end of the third quarter of the last year, the company had manufactured only 600 of these vehicles, many of which faced recalls due to defects, costing the company millions.

After transitioning from chairman to CEO in 2023, Girsky has been focusing on advancing Nikola’s production of zero-emissions trucks, yet the firm’s financial resources are rapidly diminishing.

Nikola cautioned investors during its third-quarter earnings call that it only has sufficient funds to sustain its business through the first quarter of 2025. As of the close of the third quarter, Nikola held $198 million in cash.

During the October call, Girsky stated that Nikola was “actively engaging with numerous potential partners who recognize the value of our mission and the foundation we’ve built.”

Girsky, who previously worked as a bank analyst and an executive at General Motors, brought Nikola public through a SPAC in June 2020, which sparked a wave of electric vehicle companies taking the same path.

Much like Nikola, nearly all of these companies have struggled to meet their initial expectations, facing federal investigations, scandals, and management turmoil.

Nikola’s stock has remained below $2 per share since early December. Accounting for a 1-for-30 reverse stock split last year, FactSet reveals that Nikola’s highest historical closing price was nearly $80 in June 2020.