Electric vehicle startup Nikola has filed for Chapter 11 bankruptcy protection, and will soon begin selling off its assets as it looks to pay off an estimated $270 million in long-term debt. 

According to a February 19 release from Nikola, the company now has roughly $47 million in cash on-hand, and plans to provide "limited" service and support for trucks currently in use as the sale process plays out. That said, it's unclear how the bankruptcy proceedings will impact companies using Nikola semi-trucks longer term. 

"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," said Nikola president and CEO Steve Girsky. "Unfortunately, our very best efforts have not been enough to overcome these significant challenges."

DHL Supply Chain announced in October 2024 that it would be incorporating Nikola's hydrogen-fueled trucks into its United States fleet, in a partnership with the U.S. arm of British alcoholic beverage company, Diageo North America. On February 20, a DHL spokesperson provided the following statement: "DHL Supply Chain is committed to achieving its mission of reducing greenhouse gas emissions to net zero by 2050. We work through multiple channels to realize our decarbonization goals and will continue to explore sustainable solutions for our customers and the environment. In light of the recent announcement, we are assessing the impact to our hydrogen truck project and will work with our partners to determine next steps."

Founded in 2015 by entrepreneur Trevor Milton, Nikola sought to lead the push for long-haul semi-trucks powered by hydrogen and electricity. Over the last decade, the company produced hydrogen and electric semi-trucks for a range of prominent companies, including Nestlé, DHL Supply Chain and Walmart Canada among others. But, over the last year, CNN reports that Nikola began to lose hundreds of thousands of dollars for each vehicle it sold as it attempted to scale up its production. Milton was also convicted for fraud in 2022, for lying to the public and investors about the readiness of the company's Nikola One prototype, which turned out to be missing crucial parts and systems despite Milton's frequent claims on social media and in interviews that it was fully functional and ready for market.