Trevor Milton resigns and this particular news has grabbed everyone’s attention out of nowhere. Well, Milton who owns 25% of the outstanding shares of the company towards the end of the July has finally decided to resign from the organization. According to our sources, we got to know that Milton wrote it in his resignation letter, “The focus should be on the company and its world-changing mission, not me.” Hence, he decided to stick to such a difficult decision and thus, approach the board. He says that he volunteers to step aside. Furthermore, he even said that the allegations that were levied on him were absolutely false, and thus, he would be standing against them. Besides, the company had even said that Milton accepted the proposal of giving up all of his 4.9 million performance based stock units, along with the 2-years consultancy agreement which made his net worth rise up to 20 million dollars.
The electric truck maker Nikola Corp NKLA.O share price seems to be collapsing down rapidly. It stumbled down, around 30% lesser on Monday. Founder, Trevor Milton seemed to step down due to the claims of nepotism and fraud. Nikola, a competitor to the Elon Musk’s Tesla (TSLA.O) has revealed that it was talking over the claims with the United States Securities and Exchange Commission recently. All the accusations were rejected publicly though! On the other end, Hindenburg had alleged that Milton did appoint his brother, Travis to lead a company’s unit even though he didn’t have any substantial experience in that particular sector.
Brokerage noted on the occasion as Trevor Milton resigns!
Milton’s resignation made brokerage J.P. Morgan weigh on a few partners and customer relationships as well. He further said that Grisly is rather more suited to this tole as Nikola seems to be moving up to its next phase. Furthermore, brokerage RBC had slashed the price of Nikola shares to 21 dollars straight from that of 28 dollars. The founder, Trevor Milton left the company due to regulatory probes. His statements reveal his disappointments with the allegations received from a short seller wherein the latter talked about the company misleading the investors. Milton resigned from the position of the executive chairman, and he was replaced immediately by Stephen Girsky. Girsky has been the vice chairman of General Motors Co.
Trevor Milton and Nikola related allegations from Hindenburg Research
There have been several allegations on the company, wherein a report from that of the Hindenburg Research on 10th of September, 2020 shared that the success of the company was an intricate fraud, and that it was based on an ocean of lies. In return, Nikola did issue a statement saying that the report was full of misleading information and thus, the company had hired an attorney to resolve the case, and look forward to the issue to get rid of such false accusations. All these controversies however, had brought a bad fortune for the company leading to a fall in its stock price.