- Bold Vision: Nikola promised innovative zero-emission trucks for various transport needs.
- Major Partnerships: At one point, the company secured a $2 billion deal with GM for powertrain technology.
The company's collapse was largely attributed to:
- Fraud Allegations: In 2020, Hindenburg Research accused founder Trevor Milton of fraud.
- Legal Consequences: A promotional video faced scrutiny for misleading claims, which led to Milton's resignation and eventual conviction.
- Stock Plummet: Nikola's shares experienced a significant decline following the scandal.
- Production Woes: Despite selling only 88 Class 8 Tre trucks in Q3 2024, each unit lost over $1 million to produce, with a market price of only $380,000.
- Chapter 11: Nikola has filed for Chapter 11 and is seeking court supervision as it works to offload assets.
- Uncertain Future: Currently, the company can maintain its hydrogen refueling network through March, but its long-term viability remains in doubt.
Nikola's rapid ascent was overshadowed by serious accusations and financial mismanagement, culminating in a bankruptcy filing. As the company navigates this challenging chapter, its future remains uncertain amid significant losses and operational struggles.
