Could you please summarize the article “EV Startup Nikola Goes Bankrupt in Blow to Hydrogen Fuel Cell Trucks” in the WordPress tag format?
Tags: bankruptcy, electric truck, hydrogen fuel cell, Nikola, renewable energy, startup
The publications announced on February 2, 2022, that Nikola, a company that designs and builds hydrogen fuel cell electric trucks, has filed for Chapter 11 bankruptcy in America. The company began trading on the Nasdaq in June 2020, and its stocks skyrocketed as retail investors piled onto its mission to produce heavy trucks powered by hydrogen. The established truckmakers with decades of experience buildings diesel-powered rigs saw Nikola’s rise as a considerable threat, so they targeted the startup by default until the Securities and Exchange Commission inquired about allegations of fraud. Legendary investor and the founder of Tesla Inc., Elon Musk, mocked Nikola using Twitter. The company’s former chief executive agreed to meet the Justice Department and the SEC following accusations of fraud, putting his career at risk. Nikola is currently cutting jobs, removing excess working capital, and is planning to spin off its utility business before seeking an exit from bankruptcy. The move is a significant setback for the once-hyped company, and it amplifies concerns about producing heavy-duty vehicles that are driven by options beyond traditional diesel engines. The company’s bankruptcy marks a setback for renewable energy backers, who have long hoped that hydrogen fuel cell technology could replace diesel engines and reduce greenhouse gas emissions in the manufacturing and transportation industries.
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