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 (NASDAQ:NKLA) has officially hit the wall. The once-hyped hydrogen-truck maker, briefly valued higher than Ford, has filed for Chapter 11 bankruptcy after years of bleeding cash and struggling to gain traction in the market.

Shares of Nikola Corp. (NKLA) plunged on Wednesday after the EV-maker filed for Chapter 11 bankruptcy protection following its failure to raise capital and preserve cash for its operations. The company has also filed a motion seeking authorization to pursue an auction and sale process under Section 363 of the U.