Troubled electric vehicle maker Nikola files for bankruptcy protection

illuminem summarizes for you the essential news of the day. Read the full piece on The Associated Press or enjoy below:

🗞️ Driving the news: Troubled electric vehicle maker Nikola (see sustainability performance) has filed for Chapter 11 bankruptcy protection after struggling to stay afloat
• The company, once valued at $30 billion, has faced financial and legal troubles, including the fraud conviction of its founder, Trevor Milton
• Nikola is now seeking court approval to auction and sell its business

🔭 The context: Nikola was once a rising star in the EV market but suffered a major blow when reports surfaced that it misled investors about its technology
• Milton was sentenced to four years in prison in 2023 for fraud, and Nikola settled an SEC case for $125 million without admitting wrongdoing
• The company has struggled to scale production, losing nearly $200 million in Q3 2024 despite producing only 83 trucks

🌍 Why it matters for the planet: The collapse of Nikola underscores the volatility of the EV market, which has been impacted by macroeconomic challenges and declining investor confidence
• It also highlights the risks of hype-driven investments in sustainability tech
• With Trump’s potential rollback of EV incentives, the industry faces further uncertainty

⏭️ What's next: Nikola will continue limited operations, including vehicle servicing and hydrogen fueling, through March 2025, pending court approval
• The company needs additional funding to sustain these services beyond that point
• The outcome of its bankruptcy proceedings could set a precedent for other struggling EV startups

💬 One quote: “The Board has determined that Chapter 11 represents the best possible path forward under the circumstances.” — Steve Girsky, Nikola CEO 

See here detailed sustainability performance of Nikola Corporation

📈 One stat: Nikola's stock fell over 40% on Wednesday, following a decline below $2 per share in late 2024

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