The archive · Climate & Energy · Strategic decision · 2014–2025
Nikola's hydrogen-truck bet: once near-£24bn, files Chapter 11 and auctions assets
Hydrogen-truck maker once valued near £24bn filed Chapter 11 in Feb 2025, winding down and auctioning assets after founder fraud and years of cash burn.
Nikola Corporation
What the business is
An Arizona maker of battery-electric and hydrogen fuel-cell Class 8 trucks, plus its HYLA hydrogen refueling network.
Starting capital：Went public and was briefly valued at almost £24bn; entered Chapter 11 with about $47M cash on hand
How it started
Trevor Milton founded Nikola in Phoenix in 2014, promising zero-emission trucks and claiming breakthrough hydrogen technology. After going public it was briefly valued at almost £24bn, but in 2020 short-seller Hindenburg Research challenged its technology claims, pointing to a video of a truck rolling downhill that was presented as driving.
What happened
Milton resigned after the Hindenburg report, was convicted in October 2022 of one count of securities fraud and two counts of wire fraud, and was sentenced to four years in prison. Under Steve Girsky, Nikola pivoted to hydrogen, brought the first commercially available Class 8 hydrogen fuel-cell trucks to market in North America, built the HYLA corridor between Northern and Southern California, and logged about 3.3 million fleet miles and 330 metric tons of hydrogen dispensed — but losses and capital needs kept growing.
How it ended up
On February 19, 2025 Nikola filed voluntary Chapter 11 petitions in Delaware with about $47 million in cash, saying it would pursue an orderly wind-down and a Section 363 auction of its assets; limited truck service and HYLA fueling continued only through March 2025.
Background
Nikola was founded in 2014 by Trevor Milton with a promise to reinvent zero-emission trucking — first electric trucks, then hydrogen fuel-cell Class 8 trucks paired with its own HYLA refueling network. After going public it was briefly valued at almost £24bn and attracted a large order book before delivering its first vehicle.
In 2020 Hindenburg Research challenged Nikola's technology claims, including a promotional video of a truck presented as driving when it was actually rolling down a hill. Milton resigned, was convicted in October 2022 of securities and wire fraud, and was sentenced to four years in prison. Under new CEO Steve Girsky, Nikola brought the first commercially available Class 8 hydrogen fuel-cell trucks to market in North America and built the HYLA refueling corridor in California, logging roughly 3.3 million fleet miles.
The business never scaled to its capital needs. On February 19, 2025 Nikola filed voluntary Chapter 11 petitions in Delaware with about $47 million in cash, announcing an orderly wind-down and a court-supervised Section 363 auction of assets; limited service and HYLA fueling continued only through March 2025, after which the company needed partners or had to stop.
What has to be true
- A founder story that overstated technology made every subsequent financing round carry the fraud discount.
- Owning trucks and hydrogen fuel together multiplied capital needs before fleet demand existed.
- Real milestones — 3.3 million fleet miles, 330 tons of hydrogen — were too late to reverse the cash math.
- SPAC-era expectations priced in scale that hydrogen trucking economics couldn't deliver.
What can be applied
When a founder's story overstates the technology, every later milestone carries the doubt. Even real hydrogen trucks on the road couldn't outrun the cash burn once trust and capital dried up.
Aftermath
As of September 2026, Nikola's operating story is over: the company entered Chapter 11 on February 19, 2025 with roughly $47 million in cash, pursued an orderly wind-down and a Section 363 asset auction through advisors Houlihan Lokey, and kept limited service and HYLA fueling alive only through March 2025; its shares were delisted from Nasdaq. The case is cited alongside Arrival, Fisker and Canoo as part of the post-SPAC EV shakeout, and the SEC's September 2025 decision to drop its civil case against Milton did not change the company's fate.
Sources
- Nikola Initiates Comprehensive Voluntary Chapter 11 Sale Process
- Electric truck maker Nikola files for bankruptcy
- US SEC to Dismiss Case Against Former Nikola CEO
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