The American Billionaire Trevor Milton Resigns After Fraud Claims
1- Shares of Nikola went public and slide down with 30%
2- GM shares decreased with 7%
3- Hindenburg: Nikola is an "intricate fraud built on dozens of lies."
The American company Nicola Corporation founded in 2014 by Trevor Milton witnessed a crushing electric bombshell.
Founder Trevor Milton announced tempting claims about the company's technology in order to attract investors and extend the company's partnership of automakers. Short seller Hindenburg Research released a report that smashed the company's reputation down the abyss. the report entitled "Nikola : How to Parlay an Ocean of Lies Into a Partnership with the Largest Auto OEM in America". the The devastating title was released after Nikola signed with GM. Hindenburg also described Nikola as an "intricate fraud built on dozens of lies" led by Milton.
The American Billionaire, however, rejected the alleged fraud accusations, saying that "Nikola is truly in my blood and always will be, and the focus should be on the company and its world-changing mission, not me."
The company has assigned former chairman of General Motors and member of Nikola's board Stephen Girsky as the company's new chairman after the resignation of Milton. CEO Mary Barra credited Girsky and believes he will pull it together.
Shares of Nikola Motors decreased with 30% in premarket trading because it went public, while GM shares slide down 7% this morning.
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