Nikola stock falls more as founder Trevor Milton quits amid fraud claims

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It is alleged that Milton appointed his brother to lead a unit in the company for which he did not have any substantial experience related to the sector

CEO and founder of U.S. Nikola Trevor Milton addresses a news conference at an event in Turin, Italy, in this December 3 2019 file photo. Picture: REUTERS/Massimo Pinca

GM, which announced earlier in September that it was buying an 11% stake in the electric truck-maker, said in a statement it would work with Nikola to close the deal while stressing it was just one element of its electric vehicle strategy. “The focus should be on the company and its world-changing mission, not me,” Milton, who owned 25% of the company's outstanding shares at the end of July, said in his resignation letter.He said the allegations were false and he would defend himself against them.

“While founder Trevor Milton’s departure may give the appearance of a company that's moving on, we believe this is only the beginning of Nikola’s unravelling,” Hindenburg said in its own statement on Monday, asking GM to re-evaluate its deal.

 

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