Nikola

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.