Written by Cláudio Afonso | LinkedIn | X
Shares of EV maker Nikola hit a new record low of 76 cents on Wednesday, just hours after founder and former CEO Trevor Milton published another video addressing the fraud accusations from 2020.
Nearly five years ago, and less than two weeks after signing a $2 billion deal with General Motors, Milton resigned from the truck manufacturer amid a claim that he had repeatedly lied about the company’s technology.
The resignation followed a report from the now-defunct investment fund Hindenburg Research, which accused him of making numerous false assertions, including producing a video in which a truck was rolled down an incline to create the illusion that the company had developed a working prototype.
In 2021, Nikola agreed to pay $125 million to settle civil charges brought by the U.S. Securities and Exchange Commission.
Nikola’s market capitalization, which peaked at $30 billion in mid-2020, has now dropped to $65 million based on Wednesday’s closing price. Since last year’s peak of $34.50 in late March, Nikola shares have lost 97.8% of their value.
Milton was found guilty in October 2022 on two counts of wire fraud and one count of securities fraud. He was sentenced to four years in prison in December 2023 for defrauding investors in the electric- and hydrogen-powered truck maker.
The judge allowed Milton to remain free on bail while he appeals his conviction. The former CEO remained largely silent throughout 2024 but returned to social media on earlier this month, vowing to reveal what really happened with the company.
On Wednesday, Milton wrote on X that the company’s SEC filings “were accurate, on time, and compliant with every requirement.”
“It’s remarkable how things spiraled, but the facts are simple: Nikola’s SEC filings were accurate, on time, and compliant with every requirement. The truth has always been there, even if the noise tried to drown it out. I’ve always believed in transparency, and the records prove it,” he wrote.
Here’s the video shared by Nikola’s founder on X.
Citing people familiar with the matter, Bloomberg has recently reported that the Phoenix-based startup is exploring various options, including the possibility of a sale, forming partnerships, or raising additional capital.
Nikola has still not reported its production and sales figures from the last quarter. The truck maker’s figures have historically been disclosed within the first four days of each quarter, as seen on January 4, April 4, July 2, and October 2, 2024.
The company sold 88 hydrogen fuel cell electric trucks in the third quarter of 2024, up 22 percent from the 72 units registered between April and June. For the first three quarters of the year, Nikola sold 200 hydrogen fuel cell trucks, and 235 total since the truck went on sale in late 2023.
