Nikola: the truck that rolled downhill and a company built on overstated claims

What Nikola was

Trevor Milton founded Nikola in 2014. It went public through a SPAC in June 2020, and within days its market value briefly exceeded Ford's despite almost no revenue.

In September 2020, Hindenburg Research reported, among other claims, that a 2018 video of the Nikola One driving actually showed it rolling down a hill. Milton resigned, was convicted of securities and wire fraud in 2022, and was sentenced to four years before receiving a presidential pardon in March 2025. Nikola faced recalls and cash shortages and filed for bankruptcy in February 2025.

Why it failed

1. 1

   Claims ahead of reality

   Prosecutors showed Milton made false statements about Nikola's technology and progress, inflating investor expectations far beyond what the company could deliver.

2. 2

   Hard technology and missing infrastructure

   Hydrogen trucks need refuelling infrastructure that barely existed, and Nikola's battery trucks faced a recall after fires.

3. 3

   SPAC-era valuation, manufacturing-era costs

   Going public via SPAC delivered cash and a huge valuation without the scrutiny of a traditional IPO, but building trucks needed more capital than markets were later willing to give.