Nikola is no longer in trouble but will have to pay $125mln to the SEC
This is an interesting case, imo
We're gonna have to talk about Nikola for the second day in a row because after delivering its first electric semi trucks, the Arizona-based EV manufacturer is moving on, putting past legal issues behind it with a $125mln settlement with the US Securities and Exchange Commission (SEC).
It's a well-known story but let's do a quick recap. Nikola came from nowhere and became too big too quickly. It went public ($NKLA) with a SPAC merger and the then CEO Trevor Milton made a lot of noise with some pretty bold claims, causing Nikola's stock to go through the roof. An investigation was launched, revealing that Milton's claim were unsubstantiated and, as we later discovered, fraudalent, deliberately designed to spike stock prices.
He left the company and was indicted but Nikola, the company, distanced itself from the former CEO, essentially saying "whatever he may or may not have done, it's on him, and no one else knew". It appears that the SEC is now more or less corroborating that theory, partly because Nikola has always cooperated with the authorities and partly because they evidently found out that yes, it was mostly him and not the company.
Nikola has not admitted to any wrongdoing in the SEC’s findings and the $125 million settlement will be paid in five installments through 2023.
My 2 cents? Nikola's biggest crime? They wanted to call their first truck.... BADGER. Gah. There's no redemption for that.
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Comments (9)
Trevor Milton is a dunce and deserves all the hurt that's coming for him. All of it.
But Nikola Motors, the company, will need to be legit NOW and stay legit for a decade to rebuild that lost trust.
true. And it never looks good when you "agree" to pay money to have your name cleared. It means they probably didn't do anything bad, but they may have seen something bad and did nothing about it
The 'fine' is significantly less than the financial losses the founder, Trevor Milton, misrepresentedly spiked the shares to. Many, many institutions and individuals lost fortunes through that con. Fortunately it was realised that...
Read moreI wonder how good their electricity consumption is since EVs generally peak in efficiency at around 30mph
I think you're confusing the coefficient of aerodynamic drag with mechanical efficiency. The CD of an EV truck/lorry can be slightly improved, but not hugely so. The mechanical efficiency, however, is vastly better for electrically...
Read moreI sure hope they can survive and that they are able to produce the Badger Hydrogen Fuel Cell truck. I tend to believe that HFCV will be the future and not batteries.
What if the battery pack just consists of Samsung's unreliable mobile batteries
It's both a surprise and a ray of sunshine. Nicola Motor has been flourishing behind the scenes. Their founder, the con-man, is currently being sued by them and seems likely to go to prison in the not too distant future. The pickup truck project seems at a standstill, but their semi-truck/artic-unit development is ahead of Tesla's, and nearly ready for mass production in their factory (which actually exists and is ready to open, filled with manufacturing machinery and a skilled workforce.) I gather they have two versions of heavy commercial, a full electric and a hybrid electric/hydrogen version. With real life orders on their books, and specific routes planned that will have the necessary infrastructure installed, things are looking as rosy as they ever have for the Company. I honestly thought the whole thing was vapourware after those revelations about fake trucks and non-existent factories, but the genuine engineers and directors buckled down and revitalised the whole mess. I'm really impressed quite frankly, and wish them well in their endeavours. nikolamotor.com