08:04 AM EST, 02/19/2025 (MT Newswires) -- Nikola ( NKLA ) said Wednesday that it and certain subsidiaries filed voluntary petitions for Chapter 11 bankruptcy in the US bankruptcy court for the district of Delaware.

Shares were down more than 55% in recent premarket activity.

The electric truckmaker said it also requested approval to pursue an auction and sale process under Section 363 of the US bankruptcy code. Nikola ( NKLA ) said it intends to continue limited operations during the sale process, including supporting trucks in the field and HYLA fueling operations until March 2025.

With about $47 million in cash, Nikola ( NKLA ) said it plans to fund operations, the sale process, and its exit strategy through a court-approved plan. Nikola ( NKLA ) said that a structured sale process is the best way to maximize asset value and is open to binding offers from strategic and financial buyers.