Nikola Motor Company founder Trevor Milton announced Monday morning that he would step down as executive chairman of his Phoenix, Arizona-based hydrogen-electric upstart amid a firestorm of criticism sparked by a skeptical stock short-seller and subsequent inquiry from the Securities and Exchange Commission.
“The focus should be on the company and its world changing mission,” he said, “not me.”
Milton, in announcing his intent to depart his leadership role via personal statement Monday, said he would continue “to defend myself against false accusations leveled against me by outside detractors.”
Earlier this month, short-seller Hindenburg Research released a report calling Nikola an “intricate fraud built on dozens of lies over the course of its founder and executive chairman Trevor Milton,” and claimed to have evidence, including recorded phone calls, text messages, emails and more detailing alleged false statements by Milton.
Milton personally derided the accusations and the company noted the opportunistic timing of its publication “shortly after announcement of Nikola’s partnership with General Motors Co. (GM), and the resulting positive share price reaction, was designed to provide a false impression to investors and to negatively manipulate the market in order to financially benefit short sellers, including Hindenburg itself.”
The month of September has been quite a ride for Nikola and its founder.
Nikola retained outside counsel Kirkland & Ellis LLP and authorized them to reach out directly to the SEC. The allegations are false and deceptive. On advice of counsel however, I won’t comment further now other than saying that we have involved SEC. It is in their hands and i pic.twitter.com/k1Cz3Hymca
