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Bankrupt
Electric truck maker Nikola files for Chapter 11 bankruptcy
SUMMARY
Nikola Corporation (NASDAQ:NKLA) filed for Chapter 11 bankruptcy in Delaware, leading to a significant drop in its stock price. The company aims to auction its assets under Section 363 of the Bankruptcy Code and will continue limited operations for its trucks until at least March. Nikola has about $47 million in cash to manage operations during this period.
CEO stated the company has faced significant challenges despite efforts to stabilize its finances. Nikola, founded in 2014, aimed to innovate in zero-emission vehicles but encountered fraud allegations that resulted in investigations and the resignation of its founder, Trevor Milton.
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