EV truck maker Nikola crashes into Chapter 11

Zoom in: The company, which came public during the SPAC boom, saw its market value plunge 96% over the span of a year.

• In a court filing, it listed assets between $500 million and $1 billion, and liabilities between $1 billion and $10 billion.
• The filing lists 30 creditors, including Allison Transmission, German auto supplier Bosch, and the U.S. SEC.
• Nikola's debt to the SEC stems from an $80 million settlement after the securities regulator charged Nikola's founder with fraud.

Flashback: Nikola went public via a SPAC in 2020, and the problems mounted shortly thereafter.

• The SEC charges stemmed from an advertisement that claimed to show a Nikola truck moving under its own power, when in fact it was just coasting down a slope in neutral.
• Piling on the troubles was a short seller waging a public attack on the company, calling it a fraud.
• Founder and CEO Trevor Milton stepped down amid the SEC allegations and was eventually sentenced to four years in prison on a federal fraud conviction.

Zoom out: Nikola's business struggles were not unique, and several other electric vehicle makers have suffered similar fates.

• EV companies Fisker and Canoo have both filed for Chapter 11 protection, as did Northvolt, an EV battery supplier.

What's next: The company and the court will face an uphill climb to nurse the company back to health in an environment where investors have soured on electric vehicles and companies have pulled back on their EV plans.