Nikola Corporation has filed for Chapter 11 bankruptcy and asset sale in the United States Bankruptcy Court for the District of Delaware. The company also filed a motion to auction its assets under Section 363 of the U.S. Bankruptcy Code.

Nikola Maintains Operations During Sale Process

Nikola submitted several “first-day” motions to keep limited operations running during the sale process. The company said it aims to meet employee obligations and continue supporting trucks in the field. If the court approves, Nikola will operate HYLA fueling services through March. After that, it will seek partners to manage these activities.

Nikola starts Chapter 11 bankruptcy and asset sale proceedings with about $47 million in cash. The company said it plans to use these funds to maintain operations, facilitate the sale, and exit bankruptcy. To balance liquidity needs and maximize value for stakeholders, Nikola will request court approval for an optimized sales timeline.

CEO Statement on Nikola Chapter 11 Bankruptcy Decision

“Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate,” said Steve Girsky, President and CEO of Nikola. “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. The Board has determined that Chapter 11 represents the best possible path forward for the Company and its stakeholders.”

Nikola’s Plan to Sell Assets and Wind Down Business

After reviewing strategic options with financial and legal advisors, Nikola determined that a structured sale process would generate the highest asset value. The company now focuses on marketing its assets and winding down operations.

Bidding Process for Nikola Chapter 11 Bankruptcy Assets

If the court approves, the proposed bidding procedures will allow potential buyers to submit offers for Nikola’s assets, free of debt and certain liabilities. Strategic and financial buyers can access detailed due diligence materials to evaluate the opportunity.