Hydrogen and battery-powered truck manufacturer Nikola has filed for Chapter 11 bankruptcy with approximately $47m in cash on hand.
A statement released by the controversial company said that Nikola, along with certain subsidiaries, “have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the US Bankruptcy Court for the District of Delaware.”
Nikola previously attempted to raise capital, cut costs and restructure but ultimately failed to overcome financial challenges. The firm was exploring the potential sale of parts or even the entirety of the business, according to reports last month (January).
Read more:Nikola explores strategic options amid financial challenges: reports
H2 View understands that Nikola has filed motions to maintain limited operations, including supporting existing trucks and HYLA fuelling operations until the end of March 2025. But beyond that, external partners will be required.
The Board now intends to “market and sell all, substantially all, or a portion of its assets and effectuate an orderly wind-down of its businesses.”
If the bidding process is approved by the court, interested buyers can bid on Nikola assets, free of debt and liabilities.
CEO, Steve Girsky cited industry-wide difficulties. “Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” he said.
“In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations.
“Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders.”
Previously, the truck manufacturer faced scrutiny after being accused of fraud. It was accused of releasing a promotional video that depicted a hydrogen-powered truck “in operation” while it was actually rolling downhill without power from the fuel cell powertrain.
Nikola’s founder, Trevor Milton, was later convicted of fraud in 2022 and sentenced to four years in prison in 2023.
Hydrogen-powered trucking: Progress, pitfalls and the path to cost parity
As the hydrogen application funnel has narrowed, mobility advocates have been coining heavy-duty trucks as the frontier that will reap the benefits of hydrogen.
Despite 2024 proving to be a year of hampered ambitions across various end-uses, truck firms appeared to make clear strides in deploying heavy-duty hydrogen-powered vehicles.
The phoenix out of the ashes that is Nikola in October said that it had sold 235 of its Class 8 TRE FCEV trucks between Q4 2023 and Q3 2024. The firm also unveiled trials with the likes of DHL, Purina and Walmart.
Accelera by Cummins set a new Guinness World Record for the longest distance travelled by a hydrogen FCEV truck without refuelling. The Kenworth 5370, powered by Accelera’s fuel cells, travelled 1,806 miles in California on a single fill.
While facing mounting financial pressures, Hyzon secured a 12 hydrogen refuse truck order from Californian waste management firm GreenWaste.
In Europe, Daimler Truck launched a fleet of its GenH2 liquid hydrogen-fuelled trucks for a 12-month trial with INEOS, Amazon, Air Products, Holcim and Wiedmann & Winz.
Although the growing number of deployments has bolstered hopes of hydrogen taking a mainstream spot in the future of trucking, the picture remains convoluted – with the road ahead for zero-emissions logistics in the final sprint to 2030 remaining far less than smooth.
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