"The Tesla of the trucking industry" Nikola has filed for bankruptcy

Once hailed as the "Tesla of the truck industry," Nikola ultimately filed for bankruptcy protection in a Delaware court after experiencing battery fires, weak sales, executive turmoil, and a fraud scandal involving its founder. On Wednesday, according to documents submitted by Nikola to the court, the company's asset valuation is between $500 million and $1 billion, while liabilities range from $1 billion to $10 billion, indicating severe insolvency. Earlier reports indicated that Nikola was actively seeking to alleviate cash flow pressures by exploring options such as selling part or all of its business, bringing in partners, or raising new funds, and was also considering the possibility of filing for bankruptcy. Nikola has been controversial since its listing in mid-2020. Previous reports from Jianwen pointed out that the company's founder, Trevor Milton, was convicted of securities fraud for "repeatedly lying" about vehicle production and technological progress. These allegations, combined with subsequent short-selling attacks on the company, ultimately led to Milton's resignation. This series of scandals severely damaged Nikola's reputation and shook investor confidence. After the bankruptcy news broke on Wednesday, Nikola's stock was temporarily suspended before trading resumed and fell over 57%. Nikola's market value had soared to a peak of $29 billion within days of its listing, but subsequently plummeted to less than $100 million before filing for bankruptcy, with over 99% of its market value evaporated. In recent years, Nikola has faced multiple challenges, including tight cash flow, weak demand, frequent executive departures, and plummeting stock prices. The battery fire incident in 2023 forced Nikola to suspend sales of its battery-powered trucks and conduct recalls. These internal issues, coupled with intensified external competition, have made it difficult for Nikola to navigate the fierce market competition. It is worth mentioning that Nikola's bankruptcy is not an isolated case. In the challenging environment facing the electric vehicle industry as a whole, high costs, inadequate charging infrastructure, and insufficient consumer interest have led many electric vehicle manufacturers into distress. Fisker Inc. filed for bankruptcy protection in June this year, while Canoo Inc. announced its bankruptcy liquidation on January 17. Like Nikola, these companies emerged during the 2020 SPAC (Special Purpose Acquisition Company) reverse merger boom. Swedish battery manufacturer Northvolt AB also filed for bankruptcy protection in the U.S. last November