The once high-flying zero-emission truck developer Nikola Corporation has reached an $83 million settlement with the U.S. Securities and Exchange Commission as part of its ongoing bankruptcy and liquidation proceedings, according to court filings made public Friday. The agreement is one of the most significant steps yet in the unraveling of a company that only a few years ago was touted as a pioneer in electric and hydrogen-powered trucking.
The SEC claim, detailed in the filings, is divided into two categories — an “unsecured claim” of approximately $43 million and a “junior claim” of roughly $40 million. Together, they reflect the regulatory fallout from years of investigations into the company’s public disclosures and investor communications. The settlement is folded into Nikola’s broader Chapter 11 plan of liquidation, which also covers nine affiliated debtors, including Nikola Motor Co. LLC and Nikola Energy Co. LLC.
This SEC resolution is far from the only legal obstacle the company has been grappling with since its bankruptcy. Nikola also faces a securities class-action lawsuit in Arizona and multiple shareholder derivative actions filed in Delaware and Arizona. According to Friday’s filings, a separate settlement tied to those derivative suits will funnel about $25.7 million back to the company’s estates. That sum is expected to come from a combination of insurance proceeds and contributions from individual defendants named in the litigation.
The developments mark another milestone in a stunning corporate reversal. Nikola once captured Wall Street’s imagination as an early entrant into the zero-emission trucking space, promising battery-electric and hydrogen-powered vehicles that would revolutionize freight hauling. But its financial and operational troubles, combined with mounting regulatory scrutiny, steadily eroded investor confidence. The company cited supply chain problems and sustained financial strain before ultimately filing for Chapter 11 bankruptcy earlier this year.
Signs of distress had been evident for months. On June 24, 2024, Nikola enacted a 1-for-30 reverse stock split in an effort to prop up its share price. In February 2025, Nasdaq notified the company that its common stock would be delisted for failing to meet minimum listing requirements, and trading was officially suspended on Feb. 26. The stock now trades on the over-the-counter Pink Market under the symbol NKLAQ.
At the time of its bankruptcy petition, Nikola reported approximately $97.7 million in total funded debt and financing lease obligations, underscoring the scale of its financial challenges. Industry observers have noted that while the liquidation plan and SEC settlement may help resolve outstanding claims, they also effectively close the book on one of the most closely watched and controversial electric vehicle startups of the past decade.
With the settlement in place, the company’s bankruptcy process will continue to wind down through court oversight. Creditors and regulators are now working to finalize the distribution of Nikola’s remaining assets as the company’s once-ambitious dream of transforming the trucking industry recedes into history.
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