Electric-truck maker Nikola Corp. filed for Chapter 11 bankruptcy protection on Wednesday after the company failed to overcome market and macroeconomic challenges.Â
“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” CEO Steve Girsky said in a statement.
Girsky said the company has taken “numerous actions” to raise capital, reduce liabilities, clean up its balance sheet and preserve cash to sustain operations in recent months, but it wasn’t enough to overcome the “significant challenges” the company had been facing. He said that filing for bankruptcy protection was the “best possible path forward” for the company and its stakeholders.Â
As of Wednesday, Nikola has around $47 million in cash to keep things running while it tries to sell off assets and reorganize. The company is also seeking court approval to sell its assets quickly to make sure it has enough money to cover costs during the bankruptcy process.
This is a developing story. Please check back for updates.