Trucking news and briefs for Monday, Sept. 21, 2020:
Nikola boss out amid fraud claims, SEC probe
Nikola Motor Company founder Trevor Milton announced Monday morning that he would step down as executive chairman of his Phoenix, Arizona-based hydrogen-electric upstart amid a firestorm of criticism sparked by a skeptical stock short-seller and subsequent inquiry from the Securities and Exchange Commission.
“The focus should be on the company and its world changing mission,” he said, “not me.”
Milton, in announcing his intent to depart his leadership role via personal statement Monday, said he would continue “to defend myself against false accusations leveled against me by outside detractors.”
Just two weeks ago the company announced a strategic partnership with GM, which included an ownership stake for the Detroit-based automotive giant in exchange for Nikola’s use of GM-developed battery system and fuel cell technologies. Nikola also tasked GM with production of its forthcoming Badger pickup.
Days later, short-seller Hindenburg Research released a report calling Nikola an “intricate fraud built on dozens of lies over the course of its founder and executive chairman Trevor Milton,” and claimed to have evidence, including recorded phone calls, text messages, emails and more detailing alleged false statements by Milton.
