Watch Now

Nikola CFO: Milton statements ‘could be inaccurate or exaggerated’

Electric truck startup called ‘story stock’ with no financial fundamentals

Nikola CFO Kim Brady testified in the fraud trial of company founder Trevor Milton that MIlton's statements 'could be inaccurate or exaggerated.' (Photo: Nikola)

Nikola Corp. founder Trevor Milton linked his social media posts to the newly public electric truck maker’s rising stock price, CFO Kim Brady testified Friday, supporting the government’s fraud case against Milton.

Milton faces a maximum of 25 years in prison if convicted of the most serious of four federal fraud charges. The government claims Milton defrauded investors by lying about the company’s technology accomplishments and the promise of future products to inflate the stock price.

Brady joined Nikola in 2017 after a 20-year career in investment banking,. Assistant U.S. Attorney Matthew Podolsky asked him whether Milton’s statements about the company he founded in 2015 were accurate.

“No,” Brady responded. “They could be inaccurate or exaggerated.”

CFO: Nikola a ‘story stock’

Brady said he spoke with Milton about his habit of tweeting and appearing on social media podcasts, warning him about courting retail investors.

“We were concerned. Nikola was a story stock,” Brady said. “So, we had to be careful. Retail investors do not have experience.” 

He later explained that a story stock has no financial fundamentals. 

“So there is speculation, triggered by what the management may say,” Brady said. “I told Trevor it had to be accurate.”

Podolsky asked Brady whether Milton linked his statements to the company’s stock price.

“He would point at a rise, to what he had said,” Brady said.

The price of Nikola shares soared in the weeks after it went public in June 2020 via sponsorship by special purpose acquisition company VectoIQ. In testimony earlier this week, CEO Mark Russell testified that Milton was unhappy with the company bankers’ effectiveness in attracting qualified investors to Nikola.

Milton unprepared’ to be CEO of a publicly traded company’

Brady said institutional investors expressed concern that Milton “was not prepared to be CEO of a publicly traded company.” They wanted a lockup on Milton’s shares, preventing him from immediately selling when the company went public. At the time Milton owned about 25% of Nikola shares. 

Milton sought and received board permission to cash out $70 million worth of his shares before the SPAC business combination concluded, resulting in Nikola’s listing on the Nasdaq. Milton used some of that money along with Nikola stock options to purchase a Utah ranch.

The use of stock options in the real estate deal underlies the fourth charge against Milton added in June. 

Under cross-examination, Mukasey asked Brady about his statement to investor Hanwha Group, a South Korea-based maker of solar panels, that “Nikola is building” with apparent reference to a $30 million purchase of electrolyzers from Norway’s Nel ASA, a Norway-based maker of fuel cells.

Throughout the trial, the defense has tried to show jurors on cross-examination that prosecution witnesses against Milton made misstatements about Nikola’s progress and prowess.

Nikola CEO says company executives tried ‘intervention’ with Trevor Milton

Nikola CEO testifies Tevor Milton went on ‘blitz’ to attract shareholders

Trevor Milton cast as greedy villain and betrayal victim in fraud trial

Click for more FreightWaves articles by Alan Adler.


  1. Sarah Elizabeth

    I am making $45 an hour working from home. I never imagined that it was honest to goodness yet my closest companion is earning $10,500 a month by working on a laptop, that was truly astounding for me, she prescribed for me to attempt it simply.
    Everybody must try this job now by just use this… 𝐖𝐰𝐰.𝐏𝐫𝐨𝐟𝐢𝐭𝟗𝟕.𝐂𝐨𝐦

  2. Gloria

    Great article, Mike. I respect your work, i’m presently making over $35000 bucks month-to-month simply through doing a truthful activity on-line! i do recognize You currently developing a amazing deal of dollars on-line from $28000 bucks, its easy on-line operational jobs

    absolutely open the link———- 𝐖𝐰𝐰.𝐍𝐞𝐭𝐉𝐨𝐛𝟏.𝐜𝐨𝐦

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.