Nikola’s Nasdaq Exit Seals Dark Chapter in EV Saga | Image Source: www.nikolamotor.com
PHOENIX, Arizona – March 24, 2025 – In a movement that highlights the final unveiling of one of the most spoken names in the electric vehicle (EV) sector, Nikola Corporation announced its intention to voluntarily eliminate its actions from the Nasdaq exchange, a decision that follows months of financial turmoil, legal battles and strategic mistakes. The company also plans to deregulate with the Securities and Change Commission (SEC), moving away from its obligations as a public business enterprise.
Why is Nikola enlisting Nasdaq?
The official announcement arrived on 24 March, Nikola stating that he would submit a form 25 to the SEC around 3 April 2025. This presentation will remove your values from the Nasdaq list and record. The movement took place after Nasdaq had already suspended Nikola’s share trading on 26 February and had notified the company of an upcoming removal due to non-compliance with the inclusion requirements.
However, when Nasdaq did not start deleting the list, Nikola chose to take the measure voluntarily. Once Form 25 is in effect, Nikola will follow Form 15 to terminate reporting obligations under the 1934 Stock Exchange Act.
Translation? Nikola will no longer need to submit quarterly or annual financial reports to the ESA, which means a significant withdrawal of public responsibility. According to the company’s statement, this movement is designed to simplify transactions in the midst of ongoing bankruptcy processes.
What brought Nikola to this point?
The path of Nikola’s collapse was anything but smooth. Once acclaimed as a promising player in zero-emission truck space, Nikola’s fall was marked by scandal, exploitation problems and deep financial losses. The company presented the chapter 11 bankruptcy protection on February 19, 2025, to the US Bankruptcy Court for Delaware District.
Its fall has been accelerated by many critical problems:
- Founder Trevor Milton was convicted on federal securities fraud charges in 2022, creating a cloud of distrust around the company’s leadership.
- In 2023, a fire caused by a battery coolant leak led to a major truck recall, dealing a blow to the firm’s reputation and operations.
- The firm reported a catastrophic drop in valuation — losing over 99% of its market value in the last year alone, according to data from InvestingPro.
How will this affect Nikola’s shareholders?
That’s not fair. Nikola’s shares, once greater than $2,000 after WIPO, were valued at only 10 cents on March 25 in the free market. Prior to their suspension from Nasdaq in February, shares were traded at only 18 cents. Delisting and delisting are expected to further reduce the value of shareholders, making it very unlikely that retail investors will recover.
Future company statements warn that “the stimulation or quantity of distribution, if any, to Nikola’s stakeholders” remains uncertain. Essentially, investors could leave without anything, depending on the evolution of bankruptcy.
Will Nikola continue to operate in any way?
It’s still to be seen. According to court records and comments made at bankruptcy hearings, Nikola is actively looking for buyers for their assets. The company hired investment banker Houlihan Lokey Capital Inc. to market its remaining holdings, including its production facility in Coolidge, Arizona, and based in Phoenix.
Josh Morse, Nikola’s lawyer, told the US bankruptcy court judge Thomas Horan that potential buyers have signed non-disclosure agreements and have committed themselves to “a boom in due diligence,” including on-site visits and financial reviews. However, from now on, no stalker was announced, and Nikola lost a deadline imposed on March 17 to name one.
While the company originally intended to close a sale before April 11, this date now seems to be at best optimistic.
What about Nikola’s employees?
The company submitted a opinion from WARN on February 19, 2025, with the State of Arizona, announcing its plans to get rid of all its workforce in Arizona. This includes:
- 540 employees at its Phoenix headquarters
- 315 workers at the Coolidge manufacturing plant
The dismissals are expected to enter into force on 21 April, mainly to close Nikola’s operational presence in the State.
It’s a hard pill to swallow for employees who once believed they were part of an innovative company reshaping the freight industry. What was once considered a promising future in sustainable transport is now dissolved in an informed record.
Is this Nikola’s end?
In its present form, almost certainly. The company’s shares, which fill the bankruptcy, the withdrawal from Nasdaq’s list, the placement of employees and the sale of assets, sign a systematic dismantling. While parts of the company can survive under a new property, the Nikola brand itself cannot recover.
That said, your technology and infrastructure, especially your hydrogen charge ecosystem and Coolidge production facility, are always of interest. If a buyer materializes, it is possible that Nikola’s basic concepts can live, but not under the same name, or with the same equipment.
What are the broader implications for the EV sector?
Nikola’s fall serves as a warning signal for other EV start-ups sailing on the high-risk and high-capital road to the market. Despite the initial enthusiasm for zero-emission transport, the conversion of prototypes into profitable products remains a legal task.
From Lordstown Motors to Faraday Future, and now Nikola, many EV companies in the first stage are struggling to achieve production goals, balance sheets and investor expectations. As Tesla continues to lead space, the collapse of its competitors highlights the volatility and complexity inherent in the sector.
Lesson? Only vision is not enough. Operational excellence, trust and financial discipline are equally fundamental to building a sustainable VE business.
What do lawyers say about Nikola’s approach?
The legal observers point out that Nikola’s decision to submit form 25 and then form 15 is a strategic manoeuvre. By opt-out, the company can reduce administrative burdens and focus on restructuring or liquidation of assets without complying with the ESA.
“This is a common movement for companies in distress,” said a bankrupt lawyer familiar with the files of the public company. “The aim is to preserve the low value left by limiting future obligations and legal exposure. “
However, it is more difficult for external investors to obtain information on the financial health of the company or on the progress made as a result of bankruptcy, making it more difficult to close the book on public transparency.
As Nikola said in the press release of 24 March:
“Nikola intends to submit a form 25 on 3 April 2025 and, once it is in force, will proceed with a form 15 to deregulate its common stock with the ESA.”
Nikola’s story serves as an objective reminder: even in an industry built on disturbance, reality is finally put in motion.
Takeaway key: Nikola Corporation’s decision to exclude Nasdaq and unsubscribe from the SEC represents the final deviation of a company once positioned to redefine commercial transport. While its technology can find a second life elsewhere, the collapse of the brand reveals deeper truths about the investor’s stake, the operational execution and the unforgivable nature of public procurement.
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