EV maker recently worth more than Ford teeters on the brink as it mulls bankruptcy

Once hailed arsenic 1 of America’s astir promising EV makers, a multi-billion-dollar green-tech elephantine present appears connected the knife's borderline of bankruptcy. 

Nikola, a hydrogen class-8 motortruck manufacturer, is successful talks astir an upcoming bankruptcy, according to The Wall Street Journal. 

Initial discussions look to revolve astir a imaginable Chapter 11 filing. Executives are debating a merchantability oregon restructure of the company, according to The Journal. 

A Nikola spokesperson told the work the institution is inactive assessing its fiscal position.

In 2020, the institution went nationalist earlier adjacent producing a conveyance for the market. 

At 1 point, Nikola's worthy deed $30 cardinal and made it much invaluable than Ford. But the brand's representation rapidly crashed. 

Its emergence was fueled by bold promises from laminitis Trevor Milton, who was later convicted of securities fraud in 2022 for misleading investors astir the company’s zero-emissions technology. 

The institution captured headlines aft it admitted to doctoring a promotional YouTube video. In the video, the shaper rolled a motortruck down a hill, claiming it was operating nether its ain powerfulness - but successful reality, it was simply taking vantage of gravity.

Once a banal darling, Nikola had a batch of upwind successful its fiscal sails. 

The institution promised a dual-energy attack to its fleet of commercialized and user vehicles. 

Nikola launched designs for the Badger pickup motortruck that was expected successful some full-electric and hydrogen variants. 

Giant investors, including GM, flowed currency into the projects. GM initially took an 11 percent involvement successful the company. 

But Milton's conviction, caller main executives, dwindling marque reception compared to Nikola's aboriginal promises, and struggles to get their products to the marketplace person astir doomed the company. 

Nikola lost $200 cardinal producing 80 motortruck past year.  

In caller months, the institution has been moving down the scenes to rise capable superior to support its existent operations. 

Nikola's banal has plummeted astatine the bankruptcy report. By mid-day February 7, the banal dropped to $0.48. 

So far, the institution has produced conscionable implicit 300 accumulation vehicles since its inception.

EV HEAVE? 

Nikola's issues are portion of a greater narrative: companies are struggling with the electrical conveyance transition. 

Plenty of aboriginal electrical adopters person faltered. Fisker declared bankruptcy successful 2024, Lordstown Motors filed successful 2023, and Canoo shuttered successful 2025. 

Even large brands person struggled with the transition. Ford and Stellantis person consistently reported operating losses successful their user electrical fleet. 

However, different brands connection a metallic lining. 

The richest car institution successful the satellite is Tesla. GM reported grounds income of EVs aft launching a slate of lower-cost cars, including the Blazer EV. 

Even Hyundai and Kia, which launched a gigafactory successful Georgia to nutrient its enactment of fashionable artillery vehicles, reported profits connected its 2024 EV sales.