February 8, 2025 – According to a report by The Wall Street Journal, Nikola Corporation, the American hydrogen-electric truck manufacturer, is on the brink of bankruptcy. Once seen as a significant contender in the sustainable long-haul transportation market, the company is now exploring various options including selling the company or undergoing bankruptcy reorganization.
Nikola, which had previously accused Tesla’s Semi truck of copying its design, is currently working with Pillsbury Winthrop Shaw Pittman LLP to assess its financial situation and explore possible paths forward. A representative from Nikola stated that the company is evaluating its financial position and liquidity requirements, considering several strategies such as seeking financing as part of a financial restructuring plan.
The company, which went public in 2020 without having sold a single truck, gained notoriety when it accused Tesla’s Semi of plagiarizing the design of its Nikola One prototype. However, just a few months after its listing, Hindenburg Research published a report alleging that Nikola and its then-CEO Trevor Milton had misrepresented the company’s technology to investors. Milton was later convicted of fraud in 2022 and is currently appealing the verdict. He left Nikola following the controversy, and under new management, the company released the Nikola Tre truck.
Nikola’s latest quarterly financial report, ending September 2024, revealed a net loss of nearly $200 million, despite producing over 80 trucks during that period. The company’s future remains uncertain as it struggles to navigate through its current financial challenges.
