Nikola’s founder steps down from board as company faces fraud allegations
Nikola founder and executive chairman Trevor Milton is stepping down from the company’s board of directors after allegations that the zero-emission vehicle start-up misled investors, the company announced on Sunday. Milton will be replaced by existing board member Stephen Girsky, a former vice chairman of GM, who will become Chairman of the Board. Bloomberg reports the company’s shares fell 22 percent in US pre-market trading.
“We remain committed to delivering on our objectives and creating value for our shareholders,” said Mark Russell, Nikola’s Chief Executive Officer.
The electric truck startup has been under intense scrutiny after a report claimed the company had engaged in “lies and deception.” On September 10th, shortly after GM announced it would be taking an 11 percent stake in Nikola, short-selling firm Hindenburg Research released a report titled “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America.” Hindenburg accused the company of exaggerating the progress of its technology, in particular claiming that the company had staged a video showing one of its trucks cruising down a hill.
Nikola called the report “false and defamatory” and said that it contained “dozens” of inaccurate statements. It did not dispute that it staged the video showing the truck as functional, however, but it said that it had described the truck as being “in motion” rather than “under its own propulsion.” It claimed that Hindenburg was attempting to use its report to negatively manipulate the market.
Milton published a statement on Twitter explaining his rationale and next moves. “The focus should be on the Company… not me,” he said. “I plan to defend myself against false allegations leveled against me by outside detractors” and would be “cheering from the sidelines” for the company.
Nevertheless, the Securities and Exchange Commission is reportedly examining the company, according to Bloomberg. The Financial Times reports that the US Department of Justice is also making inquiries.
Nikola went public on June 4th, and soon the company’s stock surged so high that the company was valued higher than Ford, Bloomberg notes. Originally founded back in 2015, its primary focus is on making zero-emission big rigs that use hydrogen fuel cell technology.
Nikola founder and executive chairman Trevor Milton is stepping down from the company’s board of directors after allegations that the zero-emission vehicle start-up misled investors, the company announced on Sunday. Milton will be replaced by existing board member Stephen Girsky, a former vice chairman of GM, who will become Chairman…
Recent Posts
- Cowboy’s new all-road e-bike adds suspension and a much bigger battery
- Cowboy’s first all-road electric bike is a gentle beast
- Meta just showed off Threads’ fediverse integration for the very first time
- The Google Pixel 8A may get a brighter, 120Hz display
- Fitbit’s health chatbot will arrive later this year
Archives
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011