Nikola, all new trouble for Milton

Nikola, all new trouble for Milton

After Nikola's resignation as CEO, founder Trevor Milton also comes two allegations of sexual harassment. The agreement between Nikola and GM should be concluded this week

The turmoil continues for Nikola, the Phoenix-based company of electric trucks and pickups.

Two women accused Nikola's founder Trevor Milton, who recently stepped down as CEO and board member, of sexual assault following allegations of fraud launched by short seller Hindenburg, which the SEC and the Justice Department are investigating.

The allegations, more than 15 years old, follow Milton's resignation as Nikola's executive chairman on 21 September.

Since Hindenburg's report against Nikola, shareholder lawsuits and personal attacks against Milton have continued unabated.

In the premarket, Nikola stock lost 2.8%.


The 38-year-old billionaire is accused of sexually assaulting a woman 16 years ago, when the victim was 15 and Nikola's founder was 22.


This is the second accusation for Nikola's founder. Last week, in fact, the man was accused by his cousin, according to which Milton sexually molested her in 1999, after a funeral, when she was 15 and he was 17.


Through a spokesperson, Trevor Milton "forcefully rejects" the allegations.


For a short time Milton had a net worth of over $ 8.6 billion. The company he founded debuted on Wall Street on June 4, reaching a capitalization of $ 28.8 billion just days after its IPO.

Although Nikola hadn't produced a single vehicle, the start-up achieved a slightly higher market value than Ford's. But Nikola has not yet produced a single vehicle.


Nikola currently has a capitalization of $ 7 billion. In fact, the company's quotations were affected by the latest developments.

Earlier last week, the US-based electric truck and pickup startup experienced a pre-market thud on Wall Street: less than 22% following the announcement of founder Trevor Milton's resignation as executive chairman.


The shock at the top came less than two weeks after the Phoenix-based company found itself in the crosshairs of short seller Hindenburg Research.

In a September 10 report titled "Nikola: How to Parlay An Ocean of Lies in a Partnership with the Largest Auto OEM in America," short-selling firm Hindenburg Research accused Nikola of making false claims about its technology in order to grow partnerships with automotive companies, including General Motors.


Nikola is drifting but not alone in the stock market. On 21 September, the day of the announcement of Milton's resignation, the shares of Cnh Industrial also suffered in Piazza Affari. The company's shares recorded the worst performance of the Ftse Mib with a decline of 6% to € 6.42. In fact, prices were affected by the latest developments in the Nikola affair, of which CNH holds a share of approximately 7% through Iveco.

Shares of General Motors were also down more than 4% in the market as of 21 September. GM holds an 11% stake in Nikola.


As Cnbc reports, GM at the time declined to say whether the company was aware of allegations of fraud or sexual abuse involving Milton.

Earlier this month, GM CEO Mary Barra defended the company's $ 2 billion non-cash deal with Nikola, saying the company had conducted "proper due diligence" before signing the deal. with Nikola.

General Motors signed an agreement with Nikola to provide technology and build its electric pickup trucks on September 8.

"Our transaction with Nikola has not ended," a GM spokesperson said in an email Monday. "We are continuing our discussions with Nikola and will provide further updates as appropriate or required."

The deal is expected to close by Wednesday.

This is a machine translation from Italian language of a post published on Start Magazine at the URL on Wed, 30 Sep 2020 06:05:44 +0000.