Nikola Corporation, once a highly hyped hydrogen and battery-electric truck startup, is now on the verge of bankruptcy. Once valued at $30 billion, the company is now worth just $74 million—a shocking downfall for a firm that once claimed it would revolutionize trucking.
From Industry Disruptor to Financial Freefall
Nikola made headlines in 2020 when it went public through a SPAC merger, skyrocketing in value and even surpassing General Motors at one point. But the company quickly fell from grace after allegations that its founder, Trevor Milton, misled investors.
By 2021, Milton was charged with securities fraud, and Nikola’s reputation crumbled. Despite efforts to pivot and rebuild, the company struggled with:
- Delays in truck production
- A battery recall grounding its early vehicles
- Significant financial losses
In its December 2024 SEC filing, Nikola reported a $481.2 million net loss in the first nine months of the year. With cash reserves drying up, the company warned it could only operate through Q1 2025 without additional funding.
Desperate Moves to Stay Afloat
Last week, Nikola announced the sale of its battery assets to Mullen Automotive for an undisclosed amount. This follows two major rounds of layoffs in October and December 2024, as the company scrambled to cut costs.
Despite these efforts, Nikola is still struggling. It once promised hydrogen-powered semi-trucks, electric pickups, and even ATVs, but most of these projects never became reality. Even its once-hyped Badger pickup was revealed to be more of a PR stunt than an actual product.
Is This the End for Nikola?
Once seen as a Tesla rival, Nikola is now fighting for survival. While the company has delivered a limited number of trucks, its financial instability and past scandals may be too much to overcome.
As bankruptcy looms, one question remains: Can Nikola make a last-minute comeback, or is this the final chapter of its downfall?
