Nikola (NKLA) said Wednesday it filed for Chapter 11 bankruptcy protection and that it plans to pursue a sale of all or some of its assets amid "significant" market and macroeconomic challenges.

The electric truck maker and certain of its subsidiaries filed for protection in the US Bankruptcy Court for the District of Delaware. The company has also filed a motion seeking approval to pursue an auction and sale of the business.

"Like other companies in the electric vehicle industry, we have faced various market and macroeconomic factors that have impacted our ability to operate," Chief Executive Steve Girsky said in a 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. Unfortunately, our very best efforts have not been enough to overcome these significant challenges."

The company said it plans to sell all, substantially all, or part of its assets and implement an orderly wind down of its businesses. It is entering Chapter 11 with about $47 million in cash on hand, according to the statement.

Nikola shares were down nearly 40% in Wednesday afternoon trade. The stock has plummeted 60% so far this year.

The company said it plans to continue certain limited service and support operations for trucks in the field, including certain HYLA fueling operations through the end of next month, subject to court approval. Nikola will need one or more partners to "support such activities" after that time, it said.

In December 2021, the company agreed to pay $125 million to settle fraud charges brought by the US Securities and Exchange Commission against its founder and former CEO, Trevor Milton.

Milton, who resigned from Nikola in September 2020, was charged by the US Department of Justice in July 2021 with two counts of securities fraud and one count of wire fraud. The US Attorney's Office said at the time that Milton made false claims regarding "nearly all aspects" of Nikola's business.

In June last year, EV maker Fisker's operating subsidiary filed for bankruptcy protection amid mounting liquidity issues and a challenging macro environment.