Nikola Motor founder Trevor Milton charged with fraud
Summary
The charges, levied by the Securities and Exchange Commission (SEC), accuse Milton of "repeatedly disseminating false and misleading information – typically by speaking directly to investors through social media." Milton helped Nikola raise more than $1 billion in private offerings and go public through a business combination conducted by a special purpose acquisition company (SPAC). “Having chosen to promote Nikola through social media, Milton was obligated under the securities laws to communicate completely, accurately and truthfully,” said Gurbir S. Grewal, director of the SEC’s Division of Enforcement. Earlier this month the company announced a second phase in establishing a nationwide plan for its Class 8 truck sales and service coverage with the addition of five independent dealers with more than 51 locations in Texas, Arizona, California, Colorado, New Mexico, Florida, Delaware, Virginia and Maryland. We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities."