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Once-Valued Nikola Files for Chapter 11 Bankruptcy

2/23/2025

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Summary

Story summary

Nikola (NKLA) filed for Chapter 11 bankruptcy on February 19, down from a $27 billion valuation in 2020.
The company faced fraud allegations from Hindenburg Research and settled SEC charges for $125 million.
Founder Trevor Milton was convicted of fraud in 2022 and sentenced to four years in prison.
CEO Steve Girsky noted market challenges and plans to sell assets to facilitate bankruptcy exit.

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Story summary

Nikola (NKLA) filed for Chapter 11 bankruptcy on February 19, down from a $27 billion valuation in 2020.
The company faced fraud allegations from Hindenburg Research and settled SEC charges for $125 million.
Founder Trevor Milton was convicted of fraud in 2022 and sentenced to four years in prison.
CEO Steve Girsky noted market challenges and plans to sell assets to facilitate bankruptcy exit.