EV startup Nikola Corporation filed for bankruptcy last February 19. The company, known for its hydrogen fuel cell trucks, saw its share prices fall 95 per cent last January.
NIKOLA’S RISE AND FALL
Founded by Trevor Milton, Nikola Corporation began in Utah, USA in 2014. Just two years later, the company entered an agreement with Fitzgerald Glider Kits to build 5,000 hydrogen fuel cell-powered glider trucks known as the Nikola One.
After acquiring land in Arizona for its factories and creating four more models, Nikola Corporation merged with VectoIQ Acquisition Corporation. This merger resulted in a listing on NASDAQ. Not long after their public listing, Nikola Corporation’s shares had doubled, proving the company’s potential success in alternative energy vehicles. From USD 80,000 (AUD 125,413) in August 2020 to USD 13 billion (AUD 20.37 billion), investors had high hopes for the company, touting it as the “darling” of Wallstreet at the time.
Nikola’s stock price skyrocketed once more by 50 per cent after General Motors (GM) partnered with the start-up and acquired an 11 per cent stake in the company. GM agreed to provide hydrogen fuel cells, batteries, and manufacturing facilities to produce Nikola’s Badger. In the end, the Badger was never produced.
Not long after the company peaked, the Hinderburg Research firm published allegations of fraud against CEO Trevor Milton, claiming that Milton had purchased its signature technology and questioned previous business ventures by Milton. The Financial Times and Research Enquirer corroborated these accusations of “intricate fraud” by revealing the company fabricated a video demonstration of its Nikola One. Heavily edited, the reveal featured an engine-less truck rolled down a hill and edited to appear as if it was moving across flat terrain.
After the release of the Hinderburg report, Nikola’s shares fell 36 per cent. Several partnerships with Nikola deteriorated. GM withdrew its equity shares and Republic Services terminated a joint agreement to produce 5,000 garbage trucks.
Milton was finally convicted of fraud 2 years later in 2022. US courts sentenced the CEO to 4 years in prison in 2023, but not without a fight. Milton claimed that he foresaw the eventual bankruptcy of Nikola and that his board members framed him for his crimes.
FILING BANKRUPTCY
After shares fell 95 per cent last month, Nikola failed to obtain additional funds or a buyer to save it. The company now plans to liquidate its assets instead, reported to be worth around USD 500 million to 1 billion (AUD 783 million to 1.5 billion). Its liquid assets are worth only USD 47 million (AUD 73 million), a far cry from USD 464.8 million (AUD 727 million) in 2023.
Now, in 2025, the company has finally succumbed to its severely damaged reputation. Not only that, but the competitive EV market only furthered its downfall. Highmotor warned its readers to be wary of investing in new and upcoming EV companies, especially after a slew of EV start-up shutdowns like Fisker and Via Motors.
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