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The Company Is Currently Under A Fraud Investigation By The SEC

Nikola Motors Corporation Logo
Image Via Nikola Motors.

Company founder and Executive Chairman Trevor Milton has resigned from Nikola Corporation following a scandalous report from short sellers that has reportedly triggered an SEC investigation. Milton’s resignation comes less than two weeks after the company announced a $2 billion USD deal with General Motors.

Taking the spot of Milton is Stephen Girsky, a former vice chairman of General Motors and a member of Nikola’s board, effective immediately.

The official statement from Trevor Milton is pictured below.

Nikola Chairman Trevor Milton Resignation Letter

Triggering this fallout was a report from Hindenburg Research accusing Milton of making false statements about the company’s technology to attract investors and partnerships with other automakers, along with exposing various leaders of the company as being under-qualified, at best The report was released just two days after the company announced a deal with GM that sent both companies’ shares soaring. All gains have since been erased, while Nikola is trading at its lowest price since the company went public.

According to CNBC, GM said it will “work with Nikola to close the transaction we announced nearly two weeks ago to seize the growth opportunities in broader markets” with its battery electric and fuel cell technologies. As part of the $2 billion equity deal with Nikola, General Motors would engineer and build the Nikola Badger pickup, and would license its fuel cell and battery technology to the Phoenix-based automaker.

In hindsight, the red flags were part of the agreement. Because if Nikola had the groundbreaking fuel cell technology it so promised, why would it need to license fuel cell IP from General Motors? And why would GM go through the trouble of developing the Nikola Badger pickup truck when it’s planning an arsenal of electric pickup trucks like the 2022 GMC Hummer EV and Chevrolet Silverado EV on its own? Maybe we’ll understand more in due time. Or maybe GM didn’t actually practice the due diligence that it claimed to.

Nikola Badger GM-Nikola Deal Partnership

Written by Manoli Katakis

Muscle Cars & Trucks was founded by Manoli Katakis - an automotive media veteran that has been covering the latest car news since 2009. His journalism has uncovered dozens of major product changes, updates, plans, and cancellations long before automakers were ready to make things official.

Some highlights over the years of his reporting include the uncovering of the Zora trademark before anybody else reported on the coming of a mid-engine Corvette, as well as the dead-accurate reporting of the coming of the Chevrolet Colorado ZR2, two years before it hit the market, and even before the debut of the concept vehicle. This type of reporting has immediately continued here, with reports of the original seventh-generation Camaro plans being shelved, as well as what's in store for the Chevrolet Silverado.

Some of his work can be found on massive automotive media outlets, such as Motor1. He also has been a guest on the 910AM Radio Station with Detroit News auto critic Henry Payne, as well as the enthusiast-oriented Camaro Show podcast.

Over the years, Manoli has interviewed various automotive industry titans, leaders, and people that make things happen otherwise. These include figureheads such as GM CEO Mary Barra, GM President Mark Reuss, automotive aftermarket icon Ken Lingenfelter, Dodge firebrand Tim Kuniskis, along with various chief engineers of vehicles such as the Ford F-150 & Mustang, Chevrolet Camaro & Corvette, and many more.

At MC&T, Manoli is taking his journalism expertise, deeply planted sources, driving abilities, and automotive industry knowledge to new levels, covering more vehicles and brands than ever before. This is the place where you will continue to read groundbreaking stories about American performance vehicles, pickup trucks, and sport utility vehicles. Here is where you’ll also read insights and quotes from various automotive subject matter experts on the latest relevant products, as well as some of the latest official news from their manufacturers.

Fun facts: he also once beat Corvette Racing driver Tommy Milner in an autocross with a Chevrolet Bolt EV. The biggest vehicle he’s ever driven is a John Deere mining truck. Besides a go-kart, the smallest vehicle he’s driven has been a Hyundai i10. He’s also spent time in the cockpit of various American performance vehicle icons, including the fifth-generation Chevrolet Camaro Z/28, Dodge Challenger Demon, and Ford Mustang GT350R. He has reviewed dozens of trucks, SUVs, and performance vehicles over the years.

One of his favorite new vehicles on the market today happens to be the Chevrolet Colorado ZR2 Bison. He is also a card carrying member of the Sports Car Club of America, and regularly participates in Detroit Region autocross events.

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