Another EV Company Files for Bankruptcy

Nikola Corp., once a promising name in electric and hydrogen-powered trucks, has filed for bankruptcy. The company’s downfall, marked by fraud scandals, weak sales, and dwindling cash, signals deeper troubles in the EV industry.

Key Facts:

Nikola filed for Chapter 11 in Delaware, listing assets between $500 million and $1 billion and liabilities up to $10 billion.
The company’s shares lost 97% of their value over the past year, plunging 54% before Wednesday’s market open.
Founder Trevor Milton was convicted of fraud after overstating the company’s technology, leading to his ouster.
Nikola joins other failing EV startups like Fisker and Canoo, which also filed for bankruptcy.
Despite early hype, Nikola faced slow sales, battery fire recalls, and repeated executive shakeups.

The Rest of The Story:

Nikola, once valued at $29 billion, is now liquidating its assets after failing to turn hype into a sustainable business.

The company’s struggles began soon after it went public in 2020, as fraud allegations against its founder undermined confidence.

Despite leadership changes and capital-raising efforts, Nikola never overcame weak demand, production issues, and financial instability.

The company’s downfall mirrors broader struggles in the EV industry.

High production costs, inadequate charging infrastructure, and wavering consumer demand have made it difficult for startups to survive.

Competitors like Fisker and Canoo have faced similar fates, with other EV firms teetering on the edge.

Commentary:

Nikola’s collapse is a textbook case of the government’s green energy agenda running ahead of reality.

The EV industry has been propped up by mandates, subsidies, and corporate hype, yet it continues to stumble as real-world challenges emerge.

The push for widespread EV adoption ignored key issues—lack of infrastructure, high costs, and a market that isn’t as eager as politicians hoped.

The fraud at Nikola is just the most extreme example of what has plagued the sector.

Many EV companies rushed to market on the promise of a greener future, but their financials and technology weren’t ready.

Nikola, like others, relied on SPAC deals—essentially shortcuts to going public—rather than proving long-term viability.

Investors and consumers bought into a dream that wasn’t backed by solid fundamentals.

Beyond Nikola, the entire EV space is experiencing a reckoning.

Government mandates pushing automakers toward electric-only models are proving disastrous.

Without sustainable demand or reliable infrastructure, companies are forced to rely on endless rounds of fundraising.

That game eventually runs out, as Nikola’s bankruptcy proves.

This isn’t just about one company’s mismanagement.

It’s a sign that the forced transition to EVs is unraveling under economic realities.

Instead of letting the market decide when EVs are viable, the government and environmental lobbyists distorted the industry—leading to wasted billions and failed companies.

The Bottom Line:

Nikola’s bankruptcy is more than just another failed startup—it’s a warning sign for the entire EV industry.

Hype, fraud, and government intervention created a bubble that is now bursting.

Without real consumer demand and viable infrastructure, more EV companies will face the same fate.