The story of Nikola is a cautionary tale for the electric vehicle world. Born with a vision to transform the heavy truck market, promising a revolution in hydrogen-powered vehicles, it ended in ruins. The American electric truck manufacturer has declared bankruptcy this week and filed for creditor protection. Its assets will be sold off. At the root of this once-promising company’s downfall is its founder, Trevor Milton, who committed fraud and is now serving time in prison.
While Nikola did increase production of its hydrogen-powered trucks last year, it remained deeply unprofitable and failed to secure additional capital. Its assets are estimated at between $500 million and $1 billion, while its liabilities range from $1 billion to $10 billion. Nikola’s stock price plummeted following the bankruptcy announcement, losing over 99% of its value since its 2020 IPO. While Nikola’s market capitalization approached $30 billion at its peak, it now sits below $40 million.
Nikola joins a growing list of failed electric vehicle startups, including Fisker, Proterra, and Lordstown Motors. So, what was the story of this company that promised so much?
2014: The Birth of Nikola and Grand Plans
Trevor Milton founds Nikola Motor Company with the ambition to develop zero-emission trucks. He draws inspiration from Nikola Tesla and aims to compete with Elon Musk.
2016: The First Prototype, Nikola One
Nikola unveils a prototype hydrogen truck with a range of nearly 2,000 km. Milton promises production will begin in 2020.
2019: Portfolio Expansion
Nikola introduces an all-terrain quad, an electric water scooter, and the electric pickup truck, Badger.
2020: IPO and Rocketing Growth
Nikola goes public on the Nasdaq, and its value reaches $30 billion, matching Ford’s market capitalization.
2020: Huge Orders and Partnership with GM
Republic Services orders 2,500 electric garbage trucks. General Motors invests $2 billion and plans to collaborate on the Badger pickup.
2020: Fraud Unveiled and Founder’s Fall
Hindenburg Research releases an analysis accusing Nikola of fraud. Milton is charged with lying about technology and steps down.
2020: Cancellations and Descent
GM cancels its investment, Republic Services cancels its order. Nikola teeters on the brink of collapse.
2021: Milton Indicted and a New Beginning
Milton is charged with fraud, but Nikola tries to continue with new leadership. It secures a deal with Bosch and delivers its first trucks.
2022: Milton Convicted and Romeo Power Acquisition
Milton is convicted of fraud, and Nikola acquires bankrupt battery manufacturer Romeo Power.
2023: Troubles and Prison for Milton
Nikola recalls trucks due to battery issues. Milton is sentenced to four years in prison.
2024: Hefty Fine for Milton
Milton is ordered to pay a financial penalty and damages of $168 million.
2025: Bankruptcy and the End of the Story
Nikola has filed for bankruptcy. Steve Girsky, the current CEO of Nikola, stated that the company, “like other electric vehicle companies… faced various market and macroeconomic factors that affected [its] ability to operate. Unfortunately, even with our best efforts, we were unable to overcome these significant challenges.”
The story of Nikola demonstrates the importance of separating vision from reality. Vision alone is not enough; it needs to be realized. And ultimately, lies have short legs.