Trevor Milton CEO of Nikola
Massimo Pinca | Reuters
The electrical truck firm mentioned the board accepted Milton’s resignation, including that Stephen Girsky, former vice chairman of General Motors and a member of Nikola’s board, has been appointed chairman of the board, efficient instantly.
“Nikola is actually in my blood and all the time will probably be, and the main target ought to be on the Firm and its world-changing mission, not me,” Milton mentioned in an announcement. “So I made the troublesome determination to strategy the Board and volunteer to step apart as Govt Chairman. Founding Nikola and rising it into an organization that may change transportation for the higher and assist defend our world’s local weather has been an unbelievable honor.”
The announcement comes after short-selling agency Hindenburg Analysis accused Nikola of fraud. The corporate pushed again on the accusations, saying there have been “dozens” of inaccurate allegations within the report. The Securities and Trade Fee and Division of Justice are reportedly investigating claims that the corporate misled traders.
Hindenburg alleged Milton had made false statements about Nikola’s know-how with a purpose to develop and safe partnerships with automakers.
In an early Monday tweet, Milton mentioned, “I intend to defend myself towards false allegations leveled towards me by outdoors detractors.”
GM recently took a 11% stake within the firm and mentioned it will produce Nikola’s marquee hydrogen gas cell electrical pickup truck the Badger by the tip of 2022. Final week, GM CEO Mary Barra mentioned the automaker carried out “appropriate diligence” concerning a $2 billion take care of the electrical automobile start-up.
Nikola has been wildly unstable this 12 months, rising from $13 at first of Could to a present 52-week excessive of $93.99 in June. The Nasdaq-traded shares completed Friday at $34.19.
The corporate’s common quantity over the past 10 buying and selling days has are available at 53.2 million shares, although it has solely about 361 million shares excellent.
Nikola CEO Mark Russell mentioned the corporate stays dedicated to its targets and creating worth for shareholders.
“Our priorities stay unchanged and, in collaboration with our companions, we’re laser-focused on executing on our strategic initiatives and laying the groundwork to grow to be a vertically built-in zero-emissions transportation options supplier,” Russell mentioned in an announcement.
That is breaking information. Please test again for updates.