Nikola, an electric and hydrogen truck startup, has filed for Chapter 11 bankruptcy protection, signaling difficulties faced by EV companies. Once valued at over $30 billion, Nikola was engulfed in controversy after founder Trevor Milton was accused of deceiving investors. Short-seller Hindenburg Research's report alleged the company operated on fraudulent claims, resulting in penalties, Milton's imprisonment, and significant financial losses. Despite attempts to recover and promising initiatives, such as truck sales and a million-mile milestone, Nikola faced recalls due to safety issues and ultimately succumbed to bankruptcy amidst a cash crunch.
Nikola's downfall stems from its ambitious beginnings as a promising EV startup, facing a fraud scandal and a cash crunch, leading to Chapter 11 bankruptcy.
The company rode high with a market value surpassing Ford but faced allegations of deception that ultimately resulted in heavy losses and a bankruptcy filing.
Hindenburg Research described Nikola as 'an intricate fraud built on dozens of lies,' a claim that overshadowed its earlier potential and led to major penalties.
Despite temporary recoveries, including a truck deal and one million miles driven, Nikola's reputation suffered irreparable damage, culminating in a recall and bankruptcy.
Collection
[
|
...
]