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EV Truck Startup Nikola Files for Chapter 11 Bankruptcy
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Key Points
- Electric vehicle startup Nikola filed Chapter 11 bankruptcy on Wednesday.
- The company plans to conduct an auction of its assets pending court approval.
- Nikola had reached a higher market cap than Ford Motor before selling a truck, but its vehicle would later be re-recorded on a massive scale and convicted of fraud.
Electric car starts Nikola (nkla)Apply Chapter 11 The company said on Wednesday that bankruptcy and plans to move forward through its assets auctions pending court approval.
Hydrogen Truck Manufacturers and ev The entire industry is facing various markets. Macroeconomic factors“affected the company’s business, CEO’s Office Steve Girsky said.
He said the latest attempt capital And maintaining Nikola’s business “is not enough to overcome these major challenges.”
Bankruptcy is Nicholas’ dramatic rise
Nikola’s bankruptcy filing is A dramatic years. company Public In June 2020, no truck was sold, and it reached a higher level little by little Market value Biford Motor(f). Then the 2023 vehicle recalled on a large scale Later that year, founder Trevor Milton was sentenced to four years in prison for misleading investors.
The company said it had about $47 million in cash on hand to support its bankruptcy. If the court approves the auction, the parties will be able to submit a bid to acquire Nikola’s assets.
Nikoka’s shares continued nearly 40% on Wednesday. The stock fell to about 47 cents from $21.18 a year ago.
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