Electric vehicle startup Nikola filed for Chapter 11 bankruptcy on Wednesday and plans to move forward with an auction of its assets, pending court approval.

Nikola, a Phoenix-based manufacturer of zero-emissions trucks, announced it will pursue an auction and sale process for its assets as it grapples with ongoing financial difficulties. The post Nikola files for Chapter 11 bankruptcy protection appeared first on FreightWaves.

Nikola Corp. shares took a massive hit on Monday as investors sold off the Phoenix-based electric truck maker’s stock ahead of its pending Nasdaq delisting amid a Chapter 11 bankruptcy filing.

The electric vehicle startup Nikola has filed for bankruptcy protections after it failed to secure new money or locate a buyer to keep operating.

Nikola on Feb. 19 filed the voluntary petition for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware, seeking authorization for an auction or sale of its assets.

Nikola (NKLA), once valued at around $30 billion, filed for bankruptcy. The news was not unexpected, given Nikola’s cash burn and dilutive shares sales, which were just unsustainable. Things reached a point where Nikola’s market cap fell below its quarterly cash burn.