New Cars and Bikes in India

Nikola Share Slump Deepens As Founder Resigns

Short-seller Hindenburg Research said in a scathing report earlier this month that it had gathered enough evidence to show that Nikola and Milton made false claims about company's proprietary technology to form partnerships with large automakers.

After founder Trevor Milton stepped down as executive chairman, shares of Nikola Corp fell 34% expand View Photos
After founder Trevor Milton stepped down as executive chairman, shares of Nikola Corp fell 34%

Shares of electric-truck maker Nikola Corp tumbled 34% on Monday after founder Trevor Milton stepped down as executive chairman following a public squabble with a short-seller over allegations of nepotism and fraud. The embattled company named Stephen Girsky, former vice chairman of General Motors Co and a member of Nikola's board, as chairman, effective immediately.

Short-seller Hindenburg Research said in a scathing report earlier this month that it had gathered enough evidence to show that Nikola and Milton made false claims about company's proprietary technology to form partnerships with large automakers.

"The focus should be on the Company and its world-changing mission, not me. So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman," said Milton, who owns about 20% of the company.

"I intend to defend myself against false allegations leveled against me by outside detractors," he said in a tweet.

kcel0v04

Nikola has rejected all the accusations and threatened to take legal action against Hindenburg

Newsbeep

Hindenburg also alleged that Milton appointed his brother, Travis, to lead a unit in the company despite not having any substantial experience related to the sector.

Nikola has rejected all the accusations and threatened to take legal action against Hindenburg. The U.S. Department of Justice and the U.S. Securities and Exchange Commission have been probing the claims made in the report, according to reports last week.

Hindenburg's report came soon after Nikola sealed a partnership with GM, which took an 11% stake in the company for about $2 billion and agreed to work together to make electric pickup trucks to take on Tesla Inc.

The U.S. Securities and Exchange Commission (SEC) is probing Nikola to assess the merits of short-seller Hindenburg's allegations, according to a Bloomberg News report last week.

Nikola has said it has briefed the SEC on concerns pertaining to the report.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

0 Comments

For the latest auto news and reviews, follow carandbike.com on Twitter, Facebook, and subscribe to our YouTube channel.

You might be interested in

New Car Models

BMW 2 Series Gran Coupe

Sedan, 19 Kmpl
BMW 2 Series Gran Coupe
Price Starts
₹ 39.3 - 41.4 Lakh
EMI Starts
₹ 81,580 9% / 5 yrs

Land Rover Defender

SUV, 14 Kmpl
Land Rover Defender
Price Starts
₹ 73.98 - 90.46 Lakh
EMI Starts
₹ 1,53,570 9% / 5 yrs

Mercedes-Benz EQC

SUV, 471 Km/Full Charge
Mercedes-Benz EQC
Price Starts
₹ 1 Crore
EMI Starts
₹ 2,06,130 9% / 5 yrs

MG Gloster

SUV, 12.35 Kmpl
MG Gloster
Price Starts
₹ 28.98 - 35.38 Lakh
EMI Starts
₹ 60,158 9% / 5 yrs

New Mahindra Thar 2020

SUV, 13 - 15.2 Kmpl
New Mahindra Thar 2020
Price Starts
₹ 9.8 - 13.75 Lakh
EMI Starts
₹ 20,343 9% / 5 yrs

Toyota Urban Cruiser

SUV, 17.03 - 18.76 Kmpl
Toyota Urban Cruiser
Price Starts
₹ 8.4 - 11.3 Lakh
EMI Starts
₹ 17,437 9% / 5 yrs

Kia Sonet

SUV, 18.2 - 24.1 Kmpl
Kia Sonet
Price Starts
₹ 6.71 - 11.99 Lakh
EMI Starts
₹ 13,929 9% / 5 yrs

Audi RS Q8

SUV, 8.2 Kmpl
Audi RS Q8
Price Starts
₹ 2.07 Crore
EMI Starts
₹ 4,29,698 9% / 5 yrs
Be the first one to comment
Thanks for the comments.