The Rise and Fall of Nikola Motors

Nikola, the ambitious electric trucking startup, once promised to revolutionize the transportation industry with its hydrogen and battery-electric Class 8 trucks. But after years of hype, investor enthusiasm, and a series of missteps—including a major scandal involving its founder—Nikola filed for bankruptcy on February 19, 2025, ending the company’s rise from a $30 billion valuation to collapse.

Bold Ambitions

Founded in 2015, Nikola quickly gained attention with its futuristic vision of hydrogen and electric trucks. The company went public in 2020, before selling a single vehicle, and attracted strong investor interest. Nikola unveiled the Nikola One in 2018, claiming it would revolutionize long-haul trucking with zero-emissions vehicles.

The Scandals

In 2020, Nikola was accused of misleading investors about its technology, including a notorious video that misrepresented the Nikola truck’s capabilities. Founder Trevor Milton was convicted in 2022 for fraud, further damaging the company’s credibility and eroding investor confidence.

The Fall

Nikola's hydrogen and battery-electric trucks were heavy, costly, and inefficient, while the company struggled to build the necessary infrastructure. By 2025, it was clear that Nikola’s promises were unachievable, with the company burning through cash and posting significant losses. The stock plummeted, and Nikola’s ability to scale production fell short.

The End of An Era

Nikola filed for Chapter 11 bankruptcy in February 2025, listing liabilities between $1 billion and $10 billion. The company sought to sell its assets, including intellectual property, but faced mounting debt and a tarnished reputation from the fraud scandal.

Nikola’s fall is part of a broader trend of electric vehicle startups facing challenges in scaling production and infrastructure. With companies like Fisker and Lordstown Motors also struggling, Nikola’s story highlights the high-risk nature of the industry, particularly in commercial trucking.