SPAC Autopsy Reports

Case Summary: Nikola went public via SPAC merger with VectoIQ in 2020, briefly reaching a $28 billion market cap on promises of hydrogen-electric trucks. Founder Trevor Milton was convicted of securities fraud and sentenced to four years in prison after it was revealed the company faked a promotional video by rolling a truck downhill.

What Happened: Nikola burst onto the scene in 2020 as the most hyped SPAC of the era, promising to revolutionize trucking with hydrogen fuel cell and battery-electric technology. The company's stock surged to nearly $94 per share, giving it a valuation larger than Ford — despite having zero revenue and no production vehicles. The unraveling began in September 2020 when short-seller Hindenburg Research published a devastating report titled 'Nikola: How to Parlay an Ocean of Lies into a Partnership with the Largest Auto OEM in America.' The report alleged that Nikola's famous truck demonstration video was staged — the vehicle was simply rolling downhill, not driving under its own power. Hindenburg also alleged that founder Trevor Milton had made dozens of false statements about the company's technology. The SEC launched an investigation, and Milton resigned as chairman in September 2020. In July 2021, Milton was indicted on three counts of fraud. He was found guilty in October 2022 and sentenced to four years in federal prison plus a $125 million fine. Meanwhile, Nikola attempted to pivot to actually producing battery-electric trucks, delivering a small number of Tre BEV models. But the damage was done. Nikola executed a 1-for-30 reverse stock split in June 2024 to avoid delisting, buying a few more months. By February 2025, the company filed for Chapter 11 bankruptcy, having burned through billions in cash with minimal revenue. The $28 billion peak valuation evaporated entirely, making Nikola one of the most spectacular frauds in SPAC history.

Case Summary: WeWork went public via SPAC in 2021 after its infamous failed IPO under Adam Neumann. The co-working giant filed for Chapter 11 bankruptcy in November 2023, becoming the largest SPAC bankruptcy by enterprise value.

What Happened: WeWork's SPAC journey was its second attempt at going public, following the spectacular implosion of its planned 2019 IPO that revealed massive losses and questionable governance under founder Adam Neumann. After Neumann was ousted and SoftBank took control, WeWork merged with BowX Acquisition Corp, a SPAC led by former Platinum Equity executive Vivek Ranadivé, in October 2021 at a $9 billion valuation — a fraction of its once-claimed $47 billion. The post-merger reality was grim. WeWork continued hemorrhaging cash, burning through hundreds of millions per quarter on long-term leases signed during its aggressive expansion phase. The co-working model required massive upfront capital for buildouts while generating short-term flexible revenue that couldn't cover costs. COVID-19's shift to remote work dealt a devastating blow. Occupancy rates remained stubbornly below breakeven levels even as the pandemic waned. WeWork attempted to renegotiate or exit leases, but the sheer scale of its obligations — over $13 billion in long-term lease commitments — proved insurmountable. In August 2023, WeWork issued a going-concern warning, and by November 2023, it filed Chapter 11. The company emerged from bankruptcy in mid-2024 with a dramatically smaller footprint, having rejected hundreds of leases. For SPAC investors, the result was a total loss — the stock was canceled in bankruptcy proceedings.

Case Summary: Fisker went public via SPAC in 2020, led by Henrik Fisker who had already bankrupted his previous EV company Fisker Automotive in 2013. Despite delivering some Ocean SUVs, quality issues and cash problems led to Chapter 11 in June 2024.

What Happened: Henrik Fisker founded his second EV company after his first, Fisker Automotive, went bankrupt in 2013 — a red flag that SPAC investors largely ignored. The new Fisker Inc. merged with Spartan Energy Acquisition Corp in October 2020, raising capital to develop the Fisker Ocean, a mid-priced electric SUV. For a while, things looked promising. Fisker secured a manufacturing agreement with Magna International, avoiding the capital-intensive step of building its own factory. The Ocean began deliveries in mid-2023, and the design received positive initial reviews. But problems surfaced quickly. The Ocean suffered from severe software glitches, including issues with braking, battery management, and infotainment systems. Customer complaints piled up. Fisker struggled to fix bugs fast enough and lacked the software engineering depth of competitors like Tesla. Meanwhile, the company burned cash at an alarming rate, spending heavily on marketing and operations while struggling to scale production. By early 2024, Fisker was in crisis. A potential rescue deal with Nissan fell through, and the company disclosed it had only $121 million in cash. Fisker paused production, laid off staff, and filed Chapter 11 bankruptcy in June 2024. Approximately 4,700 Ocean SUVs were sold at steep discounts during liquidation. Henrik Fisker had now bankrupted two EV companies bearing his name.

Case Summary: Hyliion promised hybrid and electric powertrain solutions for long-haul trucking, reaching an $8 billion peak valuation via SPAC merger in 2020. The company failed to generate meaningful revenue and went bankrupt in 2023.

What Happened: Hyliion was founded by Thomas Healy, a 28-year-old Carnegie Mellon graduate, and merged with Tortoise Acquisition Corp in October 2020 at the peak of EV SPAC mania. The company pitched a compelling idea: retrofit existing semi-trucks with hybrid-electric and eventually fully electric powertrains, offering a faster path to decarbonizing trucking than building entire new vehicles. The stock surged to nearly $59 before the merger even closed, driven by retail investor enthusiasm for anything EV-related. Hyliion's flagship product, the Hypertruck ERX (Electric Range Extender), was supposed to use natural gas to generate electricity for an electric drivetrain, offering lower emissions and fuel costs. But development proved far harder than projected. The ERX faced repeated delays, and when prototype reviews finally emerged, performance fell short of promises. The company struggled to attract fleet customers willing to take a chance on unproven technology from a startup. Revenue remained negligible — under $1 million per quarter through most of its public life. By 2023, with cash dwindling and no path to meaningful revenue, Hyliion effectively wound down operations. The stock had fallen over 99% from its peak, representing one of the most dramatic destructions of speculative value in the SPAC era. Healy's vision was arguably sound but years too early for the market.