Exclusive: Daily stock sales cut short Nikola CEO’s tenure

Board of directors nudged Mark Russell to earlier-than-planned retirement

Recently retired Nikola Corp. CEO Mark Russell left early because the board of directors didn't like him running the company and selling shares every day. (Photo: Nikola)

Mark Russell announced at the beginning of Nikola’s Corp.’s third-quarter earnings call Thursday that the planned January leadership transition to Michael Lohscheller was going so well that he was leaving early.

But there is more to it.  

Nikola’s board of directors encouraged Russell to leave the helm of the electric truck and hydrogen maker early because he has been cashing out large amounts of his stock options daily since Sept. 15. 

“The [Nikola share] price where it’s at makes it an issue,” Russell said in an interview with FreightWaves. “It looks bad. Me no longer being the sitting CEO helps those optics, I think.”

Russell has sold at least 75,000 shares a day since a Securities and Exchange Commission 10b-5 order took effect. It allows a company insider to automatically sell a predetermined number of shares on a continuing basis until the order is canceled. Executives promise they are not acting on inside information.

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    2 Comments

    1. CentralScrutinizer

      Russell’s comments make no sense

      MR has a long career at Worthington.. he did NOT roll over any of his Worthignton assets to NKLA.. he came in as an employee and got option grants.

      his statement — “I’ve had almost all of my net worth and my retirement in Nikola stock from the beginning, d. That’s after 10 years of it being tied up in Worthington [Industries] stock before that.” — makes NO SENSE. he still has whatever bag he took when he retired from Worthington.. and he holds tens of MILLIONS of shares of Nikola jointly with convicted conman trevor milton.. not that those shares have much worth but we are talking tens of millions of dollars/

      Russell is not being forthcoming as usual.

    Comments are closed.

    Alan Adler

    Alan Adler is an award-winning journalist who worked for The Associated Press and the Detroit Free Press. He also spent two decades in domestic and international media relations and executive communications with General Motors.