Feb 19 (Reuters) - Nikola said on Wednesday it had filed for Chapter 11 bankruptcy protection and would pursue a sale of all or most of its assets, after grappling with rapid cash burn and struggling to raise funds in the past few quarters.

The development brings a close to a challenging journey, which included numerous leadership changes, choppy sales and a plummeting share value.

Nikola shares plunged 48% in premarket trading.

EV firms that went public during the pandemic, promising to revolutionize the sector, such as Fisker, Proterra and Lordstown Motors have filed for bankruptcy in recent years as funding for the capital-intensive operations dried up due to high interest rates and flagging demand.

Nikola said it decided to initiate a sale process of its assets to maximize value and ensure an orderly wind down.

The firm will continue some operations for trucks in field and some hydrogen-fueling operations through the end of March.

The company listed assets of between $500 million and $1 billion, and estimated its liabilities were between $1 billion and $10 billion, according to a court filing.

Phoenix, Arizona-based Nikola was founded more than a decade ago. It went public in June 2020 and delivered its first vehicle in the December of the following year.

Industry veteran Stephen Girsky, who was an analyst at Morgan Stanley and an executive at General Motors, took over as the company's chief executive officer in August 2023. He was then the company's fourth CEO in as many years.

It was through his special purpose acquisition company, VectoIQ Acquisition Corp, that he took Nikola public.

Nikola ramped up production of its hydrogen-powered fuel-cell electric trucks in 2024. But the company struggled to raise funding and its cash balance dwindled as it continued to lose hundreds of thousands of dollars for every vehicle sold.

Fleet operators have been hesitant to spend on setting up charging stations and inducting electric trucks, as high interest rates pinched budgets, hurting companies such as Nikola.