Trevor Milton (Nikola founder) has slipped as an executive chairman when a short seller alleged Trevor Milton and the electric and hydrogen truck startup of misleading investors and overstating the worth of a business agreement.
Nikola founder Trevor Milton has stepped down as executive chairman after a short seller accused the hydrogen and electric truck startup of misleading investors and overstating the value of a business deal https://t.co/uMNngUuch8
— CNN (@CNN) September 21, 2020
On Sunday, in a statement, Nikola said that Trevor Milton has also resigned from the firm’s board. Moreover, the firm has already declined the accusations and threatened lawful action against the research firm that made them.
The current board member at Nikola and an ex-vice chairman of GM (General Motors), Stephen Girsky, will lead as a chairman, effective quickly.
On Twitter, in a published statement, Trevor Milton said that the focus should be on the firm and its world changing mission, not me. He added that he intends to defend himself against wrong allegations leveled against him by outside detractors.
Trevor Milton made his twitter profile private
The part of the deal that Nikola submitted with the Security and Exchange Commission, Trevor Milton, settled to revise any of the references to the situations and positions he was appointed at Nikola on his social media accounts, so it is unambiguous he no longer holds them. Furthermore, Milton even agreed to check with attorneys for Nikola before publishing anything about the firm. Trevor Milton has changed his Twitter account to private, by the late Monday morning, on the other side, his LinkedIn profile remained active and public.
Earlier this month, Hindenburg Research, which gets money by betting against different firms, posted a study accusing a series of misdeeds at Nikola, adding that Trevor Milton presented a prototype truck as being nearer to market than it was. The statement even said that Nikola mischaracterized a business contract as being worth higher than it was.
Since the statement was initially published by Hindenburg Research, the stake of the firm had already fallen by above nineteen percent in the days.
Earlier this month, in response to many of Hindenburg allegations, Nikola said that these accusations by the short seller are wrong and misleading and made to manipulate the market to profit from the manufactured drop in Nikola’s stock value.
The company said at the time that it hired a law company to explore legal activity against Hindenburg and that it decided to take the matter before the United States Securities and Exchange Commission.