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Nicola’s founder continues to dump stocks after criminal accusation

Nikola Corp. Trevor Milton, the founder of Trevor Milton, has been offloading shares since being charged with misleading and blatantly false statements about the company. NS Formal charges were issued in July, Taking advantage of a very abominable report from 2020 that Nicola claims to have misrepresented its production capacity to the grotesque, forged a video showing an inoperable prototype vehicle that behaves as if it were fully functional. bottom. This paper has attracted the attention of both the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) — As a result, Milton resigned as CEO and conducted a 12-month investigation...

according to BloombergThe founder dumped 11.7 million shares of Nicola in a series of transactions that ended on Tuesday. This is estimated to be worth about $ 131 million and overlaps with the $ 153 million stake sold by Milton in August 2021.

from Bloomberg:

A federal prosecutor disputed his claim to the startup’s first semi-track prototype. Battery-powered and hydrogen-powered pickups that are just a design sketch. Nicola’s hydrogen production capacity, battery development work, customer orders.

Earlier this month, Nicola announced that it was in talks with the US Securities and Exchange Commission to resolve the investigation and would pay a civil penalty of $ 125 million. The company closed in September with about $ 587 million in cash.

Immediately after last year’s scandal, car startups have plummeted, but stocks have been relatively stable in recent months. But it’s still on the decline, and Milton may need a lot of money to help cover some pretty bills.

But this is also what the rich do. Especially if you’re in charge of an EV startup. Milton and people like him are too often the equivalent of modern snake oil salesmen. Some companies barter untested mobility solutions. Usually target small cities desperate to rejuvenate the image.. Others simply grow and sell their dream of emission-free transportation, without hints on how it will be achieved. The results are always the same, but when a company begins to ride a tank, there are executives who buy it and fully monetize it. The money obtained may be invested in assets that generate legitimate value (such as luxury homes) and may be recirculated to the next business venture.

Of course, this is rarely limited to the automotive sector. Fraudulent business and misleading marketing are ahead of recorded history. However, some sectors of modern commerce are clearly in the black, with EV start-ups occupying near the top.

It’s hard to say that Milton had planned to scam Nicola’s investors, but there are cases where it’s done to prove that exactly what happened. In most cases, these types of financial shenanigans feel less than what can be considered true accountability. My guess is that decades-old sexual scandals that seem to always come after larger and more behavioral scandals continue to chase Milton in the media. Trevor is believed to have abused his underage cousin at a funeral at the age of 18. However, these claims quickly disappear when the general public loses interest or slaps their wrists due to unproven industrial misconduct.

Then, assuming we’re sticking to the modern “doing business” way, he reappears a few years later, and some miracles that can be mass-produced after investors have poured billions into him. New company to announce new products. Nicola, on the other hand, will fail by having a “toxic corporate culture” that can only be ended by throwing a few employees under the bus and adding female executives. But I think it’s as good as my guess as to whether the company will mass produce electric and hydrogen vehicles.

[Image: Nikola]

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Nicola's founder continues to dump stocks after criminal accusation

Source link Nicola's founder continues to dump stocks after criminal accusation

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