Nikola founder Trevor Milton steps down as chairman in battle with quick vendor

Nikola CEO: GM is helping us drive down cost

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Milton has additionally resigned from the corporate’s board, Nikola mentioned in an announcement on Sunday. The corporate has beforehand denied the allegations and threatened authorized motion in opposition to the analysis firm that made them.

Stephen Girsky, a former vice chairman of Normal Motors (GM) and present board member at Nikola, will take over as chairman with speedy impact.

“The main target needs to be on the corporate and its world-changing mission, not me. I intend to defend myself in opposition to false accusations leveled in opposition to me by exterior detractors,” Milton mentioned in an announcement posted on Twitter.

Electric truck startup Nikola hits back at short seller's report

Hindenburg Analysis, which makes cash by betting in opposition to firms, printed a report earlier this month alleging ​a variety of misdeeds at Nikola, together with that Milton offered ​a prototype truck as being nearer to market than ​it was. The report additionally mentioned that Nikola mischaracterized a enterprise deal as being value greater than it was.

Shares within the firm have dropped by greater than 19% for the reason that report was printed by Hindenburg. They fell as a lot as 24% in premarket commerce on Monday.

“These allegations by the quick vendor are false and deceptive, and designed to govern the market to revenue from a manufactured decline in Nikola’s inventory worth,” Nikola mentioned earlier this month in response to quite a lot of Hindenburg allegations.

Nikola mentioned it has employed a legislation agency to discover authorized motion in opposition to Hindenburg and that it plans to carry the matter earlier than the US Securities and Change Fee.

Within the days earlier than Hindenburg printed its report, Nikola obtained a lift from Normal Motors when the carmaker mentioned it will assist the upstart develop its new fashions in trade for an 11% stake.

Normal Motors executives mentioned the corporate had performed “applicable due diligence” earlier than signing the settlement with Nikola.

— Peter Valdes-Dapena contributed reporting.

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