Second Tesla Dreamer 'Electric Truck Company Nikola' Nears Bankruptcy Filing

A Dazzling Debut on the New York Market in 2020
At One Point Surpassing Ford in Market Capitalization
Downfall Began After CEO's Fraudulent Activities Were Exposed

The hydrogen electric truck manufacturer 'Nikola,' which dreamed of becoming the 'second Tesla,' is on the verge of filing for bankruptcy protection. Nikola attracted market attention after listing on the New York Stock Exchange in 2020, even surpassing Ford Motor Company's market capitalization at one point, but it has been on a downward path due to the CEO's fraud allegations and deteriorating performance. Nikola's bankruptcy is expected to further dampen investor sentiment toward the electric vehicle industry, which has already been weakened since President Trump's administration.

The hydrogen electric truck manufacturer 'Nikola,' which dreamed of becoming the 'second Tesla,' is on the verge of filing for bankruptcy protection. Nikola attracted market attention after listing on the New York Stock Exchange in 2020, even surpassing Ford Motor Company's market capitalization at one point, but it has been on a downward path due to the CEO's fraud allegations and deteriorating performance. Nikola's bankruptcy is expected to further dampen investor sentiment toward the electric vehicle industry, which has already been weakened since President Trump's administration.

The Wall Street Journal (WSJ) reported on the 6th (local time), citing sources familiar with the matter, that Nikola is expected to soon file for bankruptcy protection in court. According to these sources, Nikola has been discussing equity sales and restructuring plans with law firms.

Nikola was once called the second Tesla and went public on the New York market in 2020. When its stock price peaked in June 2020, its market capitalization even surpassed that of Ford Motor Company.

The company's downfall began when the fraudulent activities of Nikola's founder, Trevor Milton, were exposed. Hedge fund Hindenburg alleged that Nikola's demonstration video was manipulated, raising suspicions of fraud. According to the Hindenburg report, Milton had previously released a video on YouTube showing a moving truck, promoting it as a "fully functional vehicle," but in reality, it did not have a fuel cell or hydrogen gas storage tank installed. The truck was rolled downhill to make it appear as if it was moving on its own.

Once this was uncovered, U.S. securities and judicial authorities launched investigations, and Milton was ultimately sentenced to four years in prison for defrauding investors.

Since then, Nikola's trajectory has been dismal. According to earnings reports, Nikola produced about 80 hydrogen electric trucks in the third quarter of last year but suffered a net loss of $200 million, Bloomberg reported. Nikola's stock closed at 0.75 cents that day, essentially worthless. As Nikola's bankruptcy, once just a rumor, becomes a reality, investor sentiment toward the U.S. electric vehicle industry, including Tesla, is expected to freeze further.

The Wall Street Journal (WSJ) reported on the 6th (local time), citing sources familiar with the matter, that Nikola is expected to soon file for bankruptcy protection in court. According to these sources, Nikola has been discussing equity sales and restructuring plans with law firms.

Nikola was once called the second Tesla and went public on the New York market in 2020. When its stock price peaked in June 2020, its market capitalization even surpassed that of Ford Motor Company. The company's downfall began when the fraudulent activities of Nikola's founder, Trevor Milton, were exposed. Hedge fund Hindenburg alleged that Nikola's demonstration video was manipulated, raising suspicions of fraud. According to the Hindenburg report, Milton had previously released a video on YouTube showing a moving truck, promoting it as a "fully functional vehicle," but in reality, it did not have a fuel cell or hydrogen gas storage tank installed. The truck was rolled downhill to make it appear as if it was moving on its own.

Once this was uncovered, U.S. securities and judicial authorities launched investigations, and Milton was ultimately sentenced to four years in prison for defrauding investors.

Since then, Nikola's trajectory has been dismal. According to earnings reports, Nikola produced about 80 hydrogen electric trucks in the third quarter of last year but suffered a net loss of $200 million, Bloomberg reported. Nikola's stock closed at 0.75 cents that day, essentially worthless. As Nikola's bankruptcy, once just a rumor, becomes a reality, investor sentiment toward the U.S. electric vehicle industry, including Tesla, is expected to freeze further.