BILLIONS TO BUST

EV Maker Once Worth $30B Now on Brink of Collapse

The electric vehicle manufacturer filed for bankruptcy on Wednesday, as the most recent EV company to do so.

Nikola, the electric vehicle maker which was once worth more than Ford, filed for bankruptcy on Wednesday after being unable to secure a buyer. The company, which at its peak in 2020 was worth more than $30 billion and considered a major rival to Elon Musk’s Tesla, said waning demand, high expenses, and a loss of investors were the main reasons it filed for bankruptcy. The company’s downfall comes on the heels of other EV companies such as Fisker, Proterra and Lordstown Motors. After Nikola filed for bankruptcy, its stock fell by about 38 percent. It is now valued at only $50 million. The company has run through multiple chief executives and in 2022 Nikola’s founder, Trevor Milton, was convicted of securities fraud. The company’s available cash went from $198.3 million in September to just $47 million by Wednesday.