Well, mostly the fall. Nikola founder and Executive Chairman Trevor Milton stepped down from the electric automaker yesterday because battling an onslaught of fraud accusations makes work feel a lot more like…work.
The backstory: In the spring, Nikola went public via reverse merger and its shares surged despite never having sold a vehicle. It received another stamp of approval when GM announced a $2 billion investment to co-develop Nikola’s electric trucks.
But on September 10, short-seller Hindenburg Research wrote a scathing report attacking Nikola and Milton for misleading investors. The SEC and DOJ are now investigating.
Big picture: This isn’t a Theranos-style collapse…yet. GM is sticking with Nikola, and even though the electric automaker’s shares dropped 19% yesterday, its market capitalization remains over $10 billion.
Still, Hindenburg’s founder Nathan Anderson is watching Nikola’s descent into chaos like the Joker. Milton leaving is “only the beginning of Nikola’s unraveling,” he said yesterday.
- Don’t forget: Hindenburg stands to make money from a drop in Nikola’s share price.
Looking ahead…former GM vice chairman and Nikola board member Steve Girsky will take over immediately. Good luck, sir.
Via Morning Brew