Nikola Founder Resigns as Executive Chairman Amid Fraud Allegations
Nikola is one of those electric vehicles startups we discussed recently on a weekend bonus episode it's an electric vehicle startup not named. Tesla remember and Nikola is one of those startups that's also focusing more on trucks. Yeah well, the founder of Nikola Trevor Milton has abruptly resigned as executive chairman of Nikola amid what the Wall Street? Journal. Is Calling fraud allegations quote Nikola, which went public in June through a reverse merger has come under scrutiny. Since Short Seller Hindenburg research released a report earlier this month accusing the company and Mr Milton of making exaggerated claims about the readiness of Nicholas Technology, and how much of it is proprietary doubts about the company's readiness to produce vehicles and questions about its claim to own proprietary technology have prompted US securities regulators and the Justice Department to investigate whether Nikola misled investors. The Wall. Street Journal reported earlier this month citing people familiar with the matter Nikola has called the. report false Mr Milton said in a company statement that he had asked the board to step down. So the focus was on the business not him. He added in a separate statement posted on his twitter account. Early Monday that he intended to defend himself against quote, false allegations levelled against me by outside detractors and quote Mr Milton thirty nine years old founded Nikola twenty. Fifteen and owns nearly one quarter of the Phoenix based companies shares according to fact set he served as chief executive until the company went public at which point he became executive chairman and Mark Russell was appointed as CEO investors have seen Mr Russell as a calming influence over the bullion behavior. Mr. Milton who has frequently vented frustrations and shared ideas via twitter and quote. More. Details I learned about Nikola today while researching this segment GM recently said it would take an eleven percent stake in Nikola in exchange for helping to engineer and build an electric pickup truck called the Badger and Nicholas Stock was down twenty one percent in this morning's trading that nonetheless still gives it a thirteen billion dollar market cap. This just popped up on tech crunch quote news is breaking that Trevor Milton Nikola Co founder, and former executive chairman was arrested by the DOJ FBI at Sky Harbor Airport in Phoenix Arizona. This morning this is so far unconfirmed and quote.