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.

Nikola, an EV startup once valued higher than Ford, has filed for Chapter 11 bankruptcy. In the wake of a high-profile scandal and a recall that rocked the company to its core, Nikola says it only has about $47 million in cash on hand.

Nikola Corp. plans to lay off 855 workers between its Phoenix headquarters and Coolidge manufacturing facility as the electric truck maker moves forward with its Chapter 11 bankruptcy.