Sep 21, 2020 - Energy & Climate

Nikola founder steps aside amid allegations of fraud

Ben Geman

Nikola announced Monday that executive chairman Trevor Milton, who is also the company's founder, is out as the electric and fuel cell truck startup reportedly faces federal inquiries into a short-seller's allegations of inaccurate or misleading statements.

Why it matters: It's the latest move in a head-spinning series of events for Nikola.

The big picture: Nikola's value soared after going public in June, and GM took an 11% stake earlier this month and agreed to build its planned Badger pickup and supply tech for that vehicle and other planned semi-trucks.

Just days later, Hindenburg Research, which is shorting Nikola, issued a scathing report calling it an "intricate fraud" based on "lies" by Milton. He has disputed the claims.
The Securities and Exchange Commission and the U.S. Attorney’s Office for the Southern District of New York are both reportedly looking into the claims.

Details: Milton, in a statement, said "the focus should be on the company and its world-changing mission, not me."

Stephen Girsky, a former GM executive already on Nikola's board, is taking over as board chairman immediately.
Nikola's stock was down roughly 24% in pre-market trading.

Go deeper: GM's eyes are wide open on Nikola partnership

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Nikola founder steps aside amid allegations of fraud

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