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Feb 19 (Reuters) - Nikola (NKLA.O), opens new tab filed for Chapter 11 bankruptcy protection, according to a court filing on Wednesday, as the electric truck maker battled rapid cash burn and struggled to raise additional funds amid uncertain demand for its hydrogen and battery-powered big rigs.
The development brings a close to Nikola's challenging journey, which included numerous leadership changes, struggling electric truck sales and a plummeting share value.
The company listed assets of between $500 million and $1 billion, and estimated its liabilities were between $1 billion and $10 billion, according to the court filing.
Phoenix, Arizona-based Nikola was founded more than a decade ago. It went public in June 2020 and delivered its first vehicle in December of the following year.
Nikola ramped up production of its hydrogen-powered fuel-cell electric trucks in 2024. But the company struggled to raise funding and its cash balance dwindled as it continued to lose hundreds of thousands of dollars for every vehicle sold.
Fleet operators have been hesitant to spend on setting up charging stations and inducting electric trucks, as high interest rates pinched budgets, hurting companies such as Nikola.
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Reporting by Akash Sriram in Bengaluru; Editing by Savio D'Souza
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