THE NEUTRAL ZONE
Nikola’s founder and CEO Trevor Milton is stepping down from the company’s board of directors following reports that it allegedly engaged in fraud. Hindenburg Research accused Nikola of exaggerating the progress of its technology, though Milton remained adamant his company was not lying. The company announced Sunday that Stephen Girsky, ex-General Motors executive, will take over as chairman. GM struck a $2 billion partnership with Nikola two weeks ago to make electric trucks that would compete with Tesla.
Investors are concerned that Milton stepping down amid a probe by the Securities and Exchange Commission may lead to a loss of trust in what progress Nikola has been displaying with its electric vehicles. Investors warn this could potentially become a bad investment for GM. The stock price for Nikola is already down almost 19%.
Nikola shares open at lowest price since its public debut after company founder Trevor Milton resigns – CNBC – 9/21/2020
Shares of Nikola opened Monday at their lowest price since the company went public June 4 after company founder and Executive Chairman Trevor Milton announced his resignation overnight.
Former GM exec to take the helm of Nikola in wake of controversy – Detroit Free Press – 9/21/2020
In a news release, Nikola’s Board of Directors accepted what it called the voluntary resignation of Trevor Milton as chairman and CEO of Nikola. Nikola’s board said it accepted Milton’s proposal that Stephen Girsky replace him as the chairman, effective immediately.
Nikola Founder Trevor Milton Resigns as Executive Chairman Amid Fraud Allegations – The Wall Street Journal – 9/21/2020
Nikola Corp. founder and Executive Chairman Trevor Milton is stepping down from the electric-truck startup with immediate effect in the wake of allegations from a short seller that he and the company had made false statements to investors.
Gut Punch: Analysts React To Trevor Milton’s Departure From Nikola – Benzinga – 9/21/2020
Nikola Corporation Founder Trevor Milton stepped down as the company’s chairman and board member early Monday morning. The electric truck manufacturer’s stock has been under pressure for several weeks following a short seller report from Hindenburg Research.
Head of Nikola, a G.M. Electric Truck Partner, Quits Amid Fraud Claims – The New York Times – 9/21/2020
Less than two weeks after signing a $2 billion deal with General Motors, the founder of electric truck start-up Nikola Corp. stepped down amid a claim that he had repeatedly lied about the company’s technology.