A statement released by the controversial company said that Nikola, along with certain subsidiaries, “have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.”

Nikola previously attempted to raise capital, cut costs and restructure but ultimately failed to overcome financial challenges. The firm was exploring the potential sale of parts or even the entirety of the business, according to reports last month (January).

Read more: Nikola explores strategic options amid financial challenges: reports

H2 View understands that Nikola has filed motions to maintain limited operations, including supporting existing trucks and HYLA fuelling operations until the end of March 2025. But beyond that, external partners will be required.

The Board now intends to “market and sell all, substantially all, or a portion of its assets and effectuate an orderly wind-down of its businesses.”

If the bidding process is approved by the court, interested buyers can bid on Nikola assets, free of debt and liabilities.

CEO, Steve Girsky cited industry-wide difficulties. “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” he said.

“In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations.

“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.”

Previously, the truck manufacturer faced scrutiny after being accused of fraud. They released a promotional video that falsely depicted a hydrogen-powered truck in operation when it was actually rolling downhill.

Nikola’s founder, Trevor Milton, was later convicted of fraud in 2022 and sentenced to four years in prison in 2023.