LOS ANGELES -- American electric vehicle (EV) maker Nikola Corporation announced on Wednesday that the company has filed for bankruptcy protection.

The EV auto startup, based in Phoenix, the capital of the southwestern US state of Arizona, said in a statement that "the company and certain of its subsidiaries have filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware."

The company has also filed a motion seeking authorization to pursue an auction and sale process.

Nikola said it enters Chapter 11 with approximately $47 million in cash on hand to fund the foregoing activities, implement the post-petition sale process, and exit Chapter 11 through a plan process.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," said Steve Girsky, president and CEO of Nikola, in the statement.

"In recent months, we have taken numerous actions to raise capital, reduce our liabilities, clean up our balance sheet and preserve cash to sustain our operations," he added, noting that "Unfortunately, our very best efforts have not been enough to overcome these significant challenges, and the Board has determined that Chapter 11 represents the best possible path forward under the circumstances for the Company and its stakeholders."

The company said it intends to continue certain limited directly provided service and support operations for trucks currently in the field, including certain HYLA fueling operations through the end of March. Nikola's HYLA brand has been refueling hydrogen fuel cell electric trucks since 2023.

Nikola was founded by Trevor Milton in 2014. The company was once valued at a stunning $30 billion after it went public in June 2020. The company's stock has plunged more than 95 percent in the past year.

Nikola's downfall has played out over years, ignited by scandals and lies involving its founder Milton, CNBC reported, adding that the disgraced former chairman and CEO of the company was convicted of wire fraud and securities fraud in 2022 for misleading investors about Nikola's operations and zero-emissions technology.