Nikola Files for Chapter 11, Plans to Sell Assets and Wind Down

Nikola Corp., the Phoenix-based maker of hydrogen fuel cell and battery-electric Class 8 trucks, filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware on February 19, 2025. The company also asked the court for permission to run an auction and sale of its assets under Section 363 of the Bankruptcy Code.

Nikola said it intended to sell all, substantially all or part of its assets and carry out an orderly wind-down of its businesses. It entered bankruptcy with about $47 million in cash to fund limited operations, the sale process and an exit from Chapter 11.

Limited support for trucks in the field

Subject to court approval, Nikola said it planned to continue certain limited service and support that it provides directly, not through dealers, for trucks already in the field, including certain HYLA hydrogen fueling operations, through the end of March 2025. After that, the company said, it would need one or more partners to support those activities.

"Our customers have accumulated approximately 3.3 million fleet miles across both our FCEV and BEV truck platforms and our HYLA fueling network has dispensed well over 330 metric tons of hydrogen," CEO Steve Girsky said in the company's announcement.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," Girsky said. "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."

From $30 billion to bankruptcy

At its peak in 2020, Nikola was valued at $30 billion, more than Ford, CNBC reported. Founder Trevor Milton was convicted of wire fraud and securities fraud in 2022 for misleading investors about the company's operations and technology.

Nikola began producing trucks in 2022 and had built only about 600 through the third quarter of 2024, according to CNBC, and many of those vehicles were recalled for defects. The company reported $198 million in cash at the end of that quarter and had warned investors that it could fund the business only into the first quarter of 2025.

What it means for drivers and fleets

Fleets running Nikola trucks faced the most immediate problem. The company committed to direct service and HYLA fueling only through March 2025, so operators had weeks to plan for maintenance, parts and hydrogen supply without the manufacturer behind them. Hydrogen trucks depend on a small refueling network, and Nikola's own stations were part of the uncertainty.

More broadly, the filing was a warning for carriers weighing zero-emission equipment from young manufacturers: a truck's long-term value depends on the maker's ability to supply parts, warranty work, software and fuel. Interested buyers could bid for the assets through the court-supervised sale.