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Embattled EV maker Nikola files for Chapter 11 bankruptcy protection

1. Nikola Corp. filed for bankruptcy protection after failing to secure funding. 2. The company’s peak value was over $30 billion, now traded under $2. 3. Scandals involving former CEO Trevor Milton led to investor mistrust. 4. Only 600 vehicles produced since 2022; many recalled due to defects. 5. Nikola warns of cash depletion, adequate only until Q1 2025.

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FAQ

Why Very Bearish?

Nikola's bankruptcy filing signifies a total loss of investor confidence, similar to past failures like Theranos.

How important is it?

The article details Nikola’s bankruptcy, a critical event greatly affecting its stock and future.

Why Short Term?

Bankruptcy events tend to rapidly influence stock prices, as immediate liquidity concerns arise.

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