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Nikola Corporation Files for Chapter 11 Bankruptcy

Bankruptcy filing: Nikola Corporation has filed for Chapter 11, seeking to maximize asset value. This decision could have seismic repercussions in the stock market as investors brace for fallout.

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AI Rating:   3

Bankruptcy Filing: Nikola Corporation (NKLA) has announced that it and certain subsidiaries have filed voluntary petitions for Chapter 11 bankruptcy. The filing indicates significant financial distress and a lack of operational viability.

This decision to pursue a structured sale process aims to optimize asset value. The company's admission of needing to market and sell assets or effectuate a wind down speaks volumes about its current financial health.