Phoenix-based electric truck company Nikola files for bankruptcy
The founder and former CEO, Trevor Milton, was found guilty of criminal fraud in 2022.
PHOENIX — Nikola, the once-booming electric vehicle company headquartered in Phoenix, filed for Chapter 11 bankruptcy protection Wednesday morning.
The business, founded in 2014, promised a new model of electric battery semi-trucks. Although they initially turned heads on Wall Street with a major partnership with General Motors, the deal fell through amidst accusations of fraud and exaggeration.
In 2022, founder and then-CEO Trevor Milton was found guilty of defrauding investors over statements made as head of the company. Since then, the company has been in a financial tailspin with layoffs and recalls impacting its business.
Wednesday morning, Nikola announced on its website that it had filed for bankruptcy and would be pursuing an auction and sale process. The company will continue to support and service its trucks in the field through the end of March.
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” said Nikola President and CEO Steve Girsky in a statement.
“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,” Girsky concluded.
The company intends to market and sell all, or a substantial portion of its assets as it winds down business. Nikola headquarters is based in Phoenix, Arizona with a manufacturing facility in Coolidge, Arizona.
>> Download the 12News app for the latest local breaking news straight to your phone.