Short seller Nathan Anderson, founder of Hindenburg Research, was one of the first to expose electric vehicle and energy company Nikola Corporation's deceptive 2020 promotional video, which showed its Nikola One truck rolling down a hill to simulate full functionality. Years later, as the 'green tech' bubble continues deflating, Nikola has filed for bankruptcy on Wednesday morning...
Nikola issued a press release stating that it filed for Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware. The company also filed a motion seeking permission to pursue an auction and sale process under Section 363 of the US Bankruptcy Code.
The defunct startup listed assets between $500 million and $1 billion and liabilities between $1 billion and $10 billion in its petition. It noted that $47 million in cash was on hand to fund activities.
"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate. In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations. Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the company and its stakeholders," said Steve Girsky, President and CEO of Nikola.
The filing comes nearly a month after a Bloomberg report showed the startup was exploring options to address dwindling cash reserves, including selling part or all of its business, bringing in partners, or initiating a new funding round. Earlier this month, The Wall Street Journal reported that Nikola was on the brink of bankruptcy.
We all remember Trevor Milton—the founder and former CEO of Nikola—who was found guilty in 2022 on two counts of securities fraud and one count of wire fraud. Milton's scheme involved promoting the viability of its hydrogen-powered, zero-emission trucks on social media and podcasts, despite having a functional prototype.
At one point, Nikola commanded a $30 billion market cap ... five years later, it's now worth zero ... Thank you for playing.
Trading is halted in the premarket.
Nikola is the prime example of greenwashing during the green energy bubble during the Biden-Harris regime years.
