Nikola Corp. founder and Executive Chairman Trevor Milton is stepping down from the electrical truck companionship effective immediately. This comes in the wake of a report from a noted short-selling alleging the company of fraud. Milton is superseded by Stephen Girsky, a former General Machine ministerial who was already on the company’s board.
Nikola company stock precipitated as far as 30% in pre-market trading, currently trading around $25 a share. Over the last few months, the stock suffered wild trading with at one time the stock smacking $79 a share.
” The focus should be on the company and its world-changing operation , not me. I intend to defend myself against fraudulent accusations leveled against me by outside detractors ,” Milton said in a statement posted on Twitter.
This month, Hindenburg Research, a short seller, published a report alleging Nikola is misinforming investors. Nikola refutes the claims.
” These accusations by the short seller are false and misleading and designed to manipulate the market to profit from a created decline in Nikola’s stock price ,” Nikola said, following Hindenburg Research’s report.
This report came on the ends of a significant deal for Nikola. The young automaker had just signed an agreement with General Motors that imparted GM 11% owned in the upstart in exchange for technology and assistance getting Nikola’s first pattern to market.
Electric trucks, both buyer and commercial forms, are quickly becoming a battleground for automakers. The grocery is ripe for innovation, and incumbent automakers “re looking for” partners to kickstart actions. Ford, the captain in buyer trucks, placed with Michigan-based Rivian, which is helping develop electric vehicles for Ford. General Machine’ recent partnership with Nikola seemed smart at the time of its proclamation. Still , now, after the Hindenburg Report, the viability of the deal is in question, and with that, the future of GM’s electric pickup.
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