Sources close to the embattled fuel cell truck manufacturer are reporting that founder Trevor Milton has resigned as executive chairman of Nikola Motor (NASDAQ: NKLA) and has departed the company effective immediately.
He will remain as one of the company’s largest shareholders, but will not have a say in how the company is managed going forward. Sources tell FreightWaves that the decision was Milton’s, in an effort to protect the company and his investment. Milton owns approximately 82 million shares or 20% of the company, worth about $2.8 billion.
Milton created a vision for a hydrogen-powered trucking industry. His comments about the capabilities of Nikola and the hydrogen-powered trucking network he planned to build have occasionally stretched beyond what is physically possible, leaving many detractors to highlight these statements as proof that the company is a scam.
Others, including many in the industry and suppliers that partnered with the company, saw a firm with a grand vision and opportunity to make a major impact on the future of transportation. If successful, Nikola could greatly reduce the carbon footprint from one of the largest sources of greenhouse gas emissions. The EPA estimates that 6.4% of all such emissions in the U.S. come from medium- and heavy-duty trucks.
Before the company went public, few had heard of Nikola outside of the heavy-duty trucking industry. The company completed a reverse merger IPO or SPAC offering in June, which gave the company a valuation higher than Ford’s. Nikola has yet to mass produce a product, and all of its revenue to date came from selling solar panel installation services to Milton.
This is a developing story. Stay tuned to FreightWaves for updates.
Joseph Glaze
“fuel cell truck manufacturer” using the word “manufacturer” a little loosely I see. They have not made anything on a large scale apart from commercials for a CGI pick-up.
Dave
Future business books will write entire chapters on NKLA. IT WAS A SCAM AND MILTON WILL END UP IN JAIL. It’s going to be taught in business classes for decades to come. What a horrible way to be remembered.
Calvin Keele
How can i reach Trevor milton i want start tec company whit face book like revenues need a push pop the clutch
David in Austin
FreightWaves had the scoop on this story. Great job of doing actual journalism! One remaining question is, if you can treat all the statements from TM about the present as speculation about the future, what is left of NKLA?
Mike
Another Theranos?
Calvin Keele
Hi im calvin in salt lake been following somecwhat butt have my motives of start up tec conpany revenues like face book and been look for a jump start and wanted to contact Trevor Milton to let him get aboard this algorithm tec company
Zachary A. Carter
We all know he was a fraud.
Peacesouljer
6.4% of greenhouse gases where the vast majority comes from the butts of vegetarian animals so let’s build a filter for that. What a bunch of idiots live on the planet obviously I picked the wrong one!