Grand jury indicts founder of electric carmaker Nikola on 3 counts of fraud
The founder and one-time executive chair of Nikola Corp. was freed on $100 million bail Thursday after pleading not guilty to charges alleging he lied about the electric and hydrogen-powered truck startup, duping novice investors including some financially struggling people looking for income during the pandemic.
Nikola founder steps down amid fraud claim right after General Motors deal
DETROIT โ A couple of weeks ago, General Motors traded production capacity for $2 billion worth of Nikola stock. The fraud claim comes from the hedge fund, largely against 39-year-old Nikola founder Trevor Milton. On Sept. 8, he announced his deal with General Motors. The next day, the hedge fund made its claim, which brought the Securities and Exchange Commission into the situation. โWe acknowledge Trevor Miltonโs departure from Nikola and the decision of the Nikola board to move forward,โ General Motors officials said in a statement.
Founder of GM electric truck partner quits amid allegations
FRANKFURT โ Shares in electric and hydrogen-powered truck startup Nikola plunged on Monday after the company's founder resigned amid allegations of fraud - just two weeks after signing a $2 billion partnership with General Motors. Under the partnership announced with GM, the Detroit-based automaker would take an 11% ownership stake in Nikola and would engineer and build Nikolaโs Badger hydrogen fuel cell and electric pickup truck. In exchange for the 10-year deal, GM was to get $2 billion worth of Nikolaโs newly issued common stock that will come in three increments through 2025. GM has been under pressure from Wall Street to more quickly exploit its electric vehicle technology, while the GM deal gave the startup added credibility, according to analysts. Under the deal, Nikola will be responsible for the sales and marketing of the Badger, built on GMโs new battery electric truck underpinnings and using GM fuel cell and battery technology.