Nikola Executive Chairman Trevor Milton Steps Down

This isn’t a Theranos style collapse…yet

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

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