A few days ago, there were reports that Nikola was under investigation by both the DoJ and the Securities and Exchange Commission. This was the result of investment company Hindenburg Research alleging that Nikola was participating in fraud earlier this month.
Hindenburg Research referred to Nikola as an “intricate fraud,” claiming that they lied about their technology and used mock-ups in promotional materials instead of authentic vehicles.
Now, executive chairman and founder, Trevor Milton, has stepped down. Milton owned a 20% share in Nikola, but cited concerns of focus as his reason for leaving.
“Nikola is truly in my blood and always will be, and the focus should be on the company and its world-changing mission, not me.”
Board member and ex GM executive Stephen Girsky has been announced as its new chairman, effective immediately.
It’s not clear how involved Milton was in fraudulent activities and if his departure is in an effort to distance himself from any repercussions. Though it absolutely paints a suspicious light on the company. We suppose this is what happens when you establish a company’s value before they actually release a single product.