Nikola Corp.’s plan to sell its business in bankruptcy is complicated by the federal government’s expected retreat from policies and incentives that were meant to boost electric-vehicle sales.

ANALYSIS: Hydrogen as well as battery-pack fuelled trucks were the big plan for Nikola but they got only 400 onto the road last year. Karl Matchett details the wrong turns taken

Nikola said on Wednesday it had filed for Chapter 11 bankruptcy protection and would pursue a sale of its assets, the latest electric-vehicle maker to stumble after grappling with tepid demand, rapid cash burn and funding challenges.