The $12 billion Nikola IPO and the fall of the so-called ‘Tesla of Trucking’
Nikola Corporation’s market debut in 2020 marked one of the most talked-about moments in the electric vehicle space. The company entered public markets through a high-profile SPAC merger, quickly capturing investor attention and industry headlines. But in less than five years, the story shifted dramatically.
Nikola Corporation went public in June 2020 through a reverse merger with VectorIQ Holdings, achieving a post-merger valuation of more than $12 billion. The listing arrived during a period of strong investor interest in electric and hydrogen-powered transport. Shares surged to $93.99 within days of trading as early backers viewed Nikola as a potential rival to Tesla Inc.
Founded in 2015 and based in Phoenix, the company aimed to produce battery-electric and hydrogen-fuel-cell trucks, supported by its planned 'HYLA' hydrogen-refuelling network. However, commercial-scale production never materialised, and Nikola reported consecutive annual losses amid leadership changes and significant cash burn.
2025: Nikola bankruptcy and delisting
By early 2025, Nikola’s liquidity had deteriorated despite several fundraising rounds and large-scale cost reductions. In February 2025, the company filed for Chapter 11 bankruptcy protection, citing an inability to meet its debt obligations. It entered proceedings with around $47 million in cash and less than $100 million in debt – a fraction of its early-stage valuation.
Trading of Nikola’s common stock was halted on 26 February 2025 and the shares were delisted from the Nasdaq Stock Market, subsequently quoted on the OTC Pink Market under the ticker NKLAQ. Prices have fallen by more than 99% from their 2020 peak, trading below $0.05 per share at the time of writing.
The company is undergoing court-supervised asset sales to satisfy creditors, including settlements of pending litigation such as an $83 million SEC agreement related to past disclosure practices.
Leadership and legacy
Nikola’s founder Trevor Milton was convicted of securities and wire fraud in 2022, and successive leadership teams were unable to restore market confidence. Steve Girsky led the company at the time of its bankruptcy filing.
Most production and hydrogen-infrastructure projects have ceased. The HYLA network remains in limited service until March 2025, after which continued operations are uncertain.
Comparing Nikola and Tesla: diverging paths in electric trucking
Nikola was once described as the 'Tesla of Trucking', but the comparison no longer applies. While Tesla’s Semi truck reached high-volume production in 2025, positioning the company as a leading player in electric freight, Nikola’s commercial ambitions have effectively ended.
Tesla (TSLA)’s progress has accelerated broader industry adoption of sustainable freight solutions, whereas Nikola’s collapse highlights the capital-intensive and technically demanding nature of scaling heavy-duty zero-emission vehicles.
Market performance and investor context
Nikola’s trajectory illustrates the volatility often associated with early-stage technology ventures. From an initial high of nearly $94 per share in 2020 to penny-stock levels in 2025, its story underscores the risk of speculative valuations that are not grounded in production capacity or commercial delivery.
There is no evidence of any new Nikola IPO or re-listing event in 2025; references to a '$12 billion IPO' strictly denote the 2020 SPAC valuation.
For CFD traders, Nikola CFDs now represent highly volatile instruments, reflecting the company’s bankruptcy, delisting and limited liquidity. Positions may carry a total-loss risk, as asset values are being determined through ongoing bankruptcy proceedings.
Key takeaways
The fall of Nikola has redirected attention to financially stronger manufacturers such as Tesla and established truck makers expanding into electric and hydrogen platforms. Regulators in the US and EU continue to tighten emission targets, encouraging investment in commercial electrification but also raising capital and compliance barriers for start-ups.
For those following the sector via CFDs, trading remains speculative and should be approached with a full understanding of key risks such as low liquidity and potential delisting of underlying assets.
Past performance is not a reliable indicator of future results.
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FAQ
What does Nikola Corporation’s so-called '$12 billion IPO' refer to?
Nikola Corporation’s so-called '$12 billion IPO' refers to its 2020 reverse merger with VectorIQ Holdings, which valued the electric and hydrogen truck company at over $12 billion at the time of listing. It wasn’t a traditional initial public offering but a special purpose acquisition company (SPAC) merger, allowing Nikola to list shares on the Nasdaq Stock Market under the ticker NKLA. The event generated strong investor interest in clean transport and renewable energy innovation.
Why did Nikola file for bankruptcy in 2025?
By early 2025, Nikola faced severe financial strain, marked by high cash burn, limited revenue, and mounting legal expenses. Despite several fundraising attempts and cost-cutting measures, the company ran out of cash and filed for Chapter 11 bankruptcy protection in February 2025. At the time of filing, Nikola held around $47 million in cash and under $100 million in debt. The company is now undergoing a court-supervised asset liquidation process.
What happened to Nikola’s stock after the bankruptcy?
Following the bankruptcy announcement, Nikola’s shares were delisted from the Nasdaq Stock Market and now trade on the OTC Pink Market under the ticker NKLAQ. The stock has lost over 99% of its peak value and trades below $0.05, reflecting the company’s distressed condition. Shareholders may face significant or total losses, depending on the outcomes of ongoing bankruptcy proceedings and asset sales.
How does Nikola’s story compare to Tesla’s progress in electric trucking?
Nikola was once seen as a potential rival to Tesla (TSLA), earning the nickname 'the Tesla of Trucking.' However, their paths diverged sharply. Tesla’s Semi truck entered large-scale production in 2025, gaining presence in the electric freight sector, while Nikola’s projects stalled amid financial challenges and leadership changes. Tesla now leads industry development in commercial electric vehicles, while Nikola’s case highlights the complexity and capital demands of scaling new technologies.
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Yes, you can trade electric vehicle (EV) share CFDs on Capital.com, covering established and emerging companies in the clean energy and mobility sectors. Contracts for difference (CFDs) let you speculate on both rising and falling prices without owning the underlying shares. However, CFDs are traded on margin, and leverage amplifies both potential profits and losses.