Trevor Milton, founder of Nikola Corp., arrives at court in New York, US, on Monday, Sept. 12, 2022. Milton, who enticed auto-industry leaders and investors with his promise for a revolution in electric trucks, faces a securities-fraud trial beginning this week on allegations that he lied about his company’s development of environmentally friendly technology. Photographer: Victor J. Blue/Bloomberg via Getty Images
Milton was convicted in October 2022 for deceiving investors about the capabilities of Nikola’s hydrogen and electric truck technology, particularly the Nikola One prototype. Prosecutors argued that he had created a false image of the truck’s functionality through deceptive videos. The case came to light after Nikola went public in 2020, initially seen as a competitor to Tesla, leading to a surge in stock prices. However, fraud allegations triggered a federal probe, ultimately resulting in Milton’s conviction. Nikola’s stock value plummeted from its peak of over USD 79.73 in June 2020 to less than one dollar, causing retail investors to reportedly lose over USD 660 million. Milton had resigned as CEO in September 2020, three months after the company’s public offering. The sentencing included three years of supervised release following Milton’s prison term, marking a significant legal consequence for a prominent figure in the electric vehicle industry.
