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Why an electric truck maker once worth more than Ford just went bust
- Electric truck startup Nikola, once valued more than Ford, has filed for bankruptcy due to fraud scandal and financial issues.
- Nikola went public in 2020, reaching a valuation exceeding $30 billion, but faced setbacks, including accusations of deception and fraud.
- Founder Trevor Milton was accused of misleading investors, leading to a scandal involving fictitious technology demonstrations.
- The company's troubles escalated in 2021 with significant financial losses and a fine from the SEC, despite briefly rebounding.
- Nikola struggled to commercialize its technology, facing challenges in the heavy-duty truck market's demands for quick refueling and long ranges.
- The company's bankruptcy reflects the difficulties faced by EV startups in the competitive and costly electric vehicle industry.
- Other EV startups like Fisker and Canoo have also faced financial woes, emphasizing the challenges of establishing a profitable EV business.
- Both legacy automakers and new EV companies struggle to make profits in the electric vehicle sector, with significant financial losses reported.
- Tesla stands out as a rare success story in the EV market, with its profitable electric vehicle sales and advantage of scale.
- The struggles of EV startups highlight the daunting task of building a successful electric vehicle business, with high production costs and financial risks.
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