From $30 billion to bust: Electric truck maker Nikola files for BANKRUPTCY
By ramontomeydw // 2025-02-24
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  • Nikola Corporation, once valued at $30 billion, filed for Chapter 11 bankruptcy, exposing corporate fraud and deception in the EV industry.
  • The company's founder Trevor Milton was convicted of securities and wire fraud, and sentenced to four years in prison and a $1 million fine.
  • Nikola's collapse is attributed to misleading marketing, including a promotional video showing a non-functional prototype truck, and Milton's continued promotion of unproven technology.
  • The EV industry faces significant challenges in scaling green technology, as evidenced by the similar fates of other companies like Arrival, Fisker and Canoo.
  • The SPAC boom, which allowed companies like Nikola to bypass rigorous IPO scrutiny, has contributed to the green tech bubble and the subsequent reckoning in the industry.
The electric vehicle (EV) industry has long been heralded as the future of sustainable transportation, but the collapse of Nikola Corporation – once a $30 billion darling of the green tech boom – exposes the dark underbelly of hype, deception and greenwashing that has plagued the sector. The Arizona-based Nikola filed for Chapter 11 bankruptcy on Wednesday, Feb. 19. The filing marked the inglorious end of a company that promised to revolutionize zero-emission trucking, but instead became a cautionary tale of corporate fraud and investor manipulation. Trading on Nikola's shares were halted following the filing in Delaware. At its peak, Nikola was the poster child of the EV revolution, with founder Trevor Milton touting hydrogen-powered trucks and a vision of a cleaner future. But behind the glossy marketing and bold claims lay a house of cards. In 2020, short seller Nathan Anderson of Hindenburg Research exposed Nikola's deceptive practices, including a now-infamous promotional video that showed its Nikola One truck rolling down a hill to simulate functionality. The company had no working prototype, yet Milton continued to promote its viability on social media, podcasts and television – misleading investors and inflating the company's valuation. (Related: Nikola's staged truck video reveals how EVERYTHING is faked today, yet marketed with dramatic videos and music to trick the masses.) The fallout was swift and devastating. In 2022, Milton was convicted on two counts of securities fraud and one count of wire fraud. The following year, he was sentenced to four years behind bars and fined $1 million. Prosecutors compared him to disgraced Theranos founder Elizabeth Holmes, noting that both had built empires on lies. "Milton lied to investors again and again," said U.S. Attorney for the Southern District of New York Damian Williams following the Nikola founder's sentencing. He reiterated that Milton's punishment "should be a warning to start-up founders and corporate executives everywhere – 'fake it till you make it' is not an excuse for fraud."

How Nikola's demise unraveled the green tech bubble

Despite Milton's departure, Nikola's troubles only deepened. The company struggled to scale its business, burning through cash reserves and failing to deliver on its ambitious promises. By 2024, Nikola was exploring options to sell part or all of its business – but no lifeline materialized. In its bankruptcy filing, the company listed assets between $500 million and $1 billion against liabilities of up to $10 billion, with just $47 million in cash on hand. "Our very best efforts have not been enough to overcome these significant challenges," admitted Nikola CEO Steve Girsky, who took the helm after Milton's resignation. Nikola's collapse is emblematic of a broader reckoning in the EV industry. Arrival, Fisker and Canoo have all met similar fates, underscoring the challenges of scaling green tech in a competitive and capital-intensive market. While Nikola did achieve some milestones such as delivering hydrogen fuel cell trucks and developing a hydrogen refueling network, these accomplishments were overshadowed by the company's fraudulent origins and inability to achieve profitability. The rise and fall of Nikola also highlights the dangers of the SPAC (special purpose acquisition company) boom that fueled the green tech bubble. Milton took Nikola public through a SPAC merger in 2020, bypassing the rigorous scrutiny of a traditional initial public offering (IPO). This allowed him to make unchecked claims about the company's technology, which prosecutors argue would have been impossible under a conventional IPO process. While the Securities and Exchange Commission has since cracked down on SPACs, the damage has already been done. The green tech revolution cannot be built on lies – and Milton's prison sentence is a fitting epitaph for a company that promised the moon, but delivered only smoke and mirrors. DebtCollapse.com has more similar stories. Watch this clip explaining why electric vehicles such as Nikola's supposed offerings are a hoax. This video is from the Puretrauma357 channel on Brighteon.com.

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"Zero-emission" truck company founder sentenced to 4 years in prison for lying about company's tech and achievements. Two American vehicle companies recall over 600 electric trucks due to safety issues. Are hydrogen-powered freight trucks ready to roll out? Sources include: ZeroHedge.com FleetNews.co.uk CNBC.com Brighteon.com
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