The company has also filed a motion to pursue an auction and sale under Section 363 of the U.S. Bankruptcy Code. Nikola stated that it enters bankruptcy with approximately $47 million in cash to fund limited operations during the sale process and intends to continue certain non-dealer truck servicing and HYLA hydrogen fueling operations until the end of March 2025, subject to court approval. After this period, the company will require partners to support these activities.
“With the dedication of our employees and support from our partners, Nikola has taken significant steps to move zero-emissions transportation forward, including bringing the first commercially available Class 8 hydrogen fuel cell electric trucks to market in North America and developing the HYLA hydrogen refueling highway,” said Steve Girsky, President and CEO of Nikola.
Nikola stated that its customers have accumulated approximately 3.3 million fleet miles across its fuel cell electric vehicle (FCEV) and battery electric vehicle (BEV) platforms, and its HYLA fueling network has dispensed more than 330 metric tons of hydrogen.
However, the company cited market and economic challenges as key factors behind the decision to file for bankruptcy.
“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. “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 bankruptcy represents the best possible path forward under the circumstances for the Company and its stakeholders.”
Nikola confirmed that, after months of seeking alternative solutions, it concluded that a structured sale process was the best option to maximise the value of its assets. The company intends to sell all, substantially all, or a portion of its assets and execute an orderly wind-down of its business.
If approved by the court, the proposed bidding procedures will allow potential buyers to submit binding offers to acquire Nikola’s assets, which will be sold free from its debts and certain liabilities. The company stated that interested buyers could include both strategic and financial investors, who will have access to substantial due diligence materials.