Trevor Milton trial: How Nikola founder's $34 billion house of cards came crashing down after he positioned himself as the next Elon Musk

He is the worst fraudster since ElizabethHolmes fooled some of the smartest people in the world.

Today is the day that he will stand trial for manipulating investors with promises that he was the next Musk and the nextTesla.

He tricked a gullible General GM, who signed a partnership just weeks before his elaborate ruse was discovered.

Two years ago, when the house of cards was revealed to be a sham, the house of cards was destroyed.

The rise of Nikola

The Nikola One semi truck was first unveiled as a prototype to the public in December 2016 and dared to reimagine the modern truck by running on pure hydrogen and water.

Due to its high costs, this technology has never been successfully produced and sold in mass quantities. The technology is still being used as an alternative to battery- powered passenger cars.

When the stock debut in 2020 via a reverse merger with a blank check investment vehicle known as a SPAC, investors snapped up shares to get in on the ground floor of the nextTesla Despite never having brought a single product to market, its market cap briefly surpassed that of Ford, rising to $34 billion.

As it rushed out announcements it could produce hydrogen cheaper than anyone else, it had a game-changing battery technology up its sleeve, and it would build a new pickup truck called the Badger for the lucrative retail market.

The value of General GM's stock was lifted in September 2020 when the company agreed to a manufacturing partnership receiving 20% of its shares as part of a deal to build its Badger.

Many retail investors, who had time and money to spare, had begun to purchase shares in the company at a rapid pace.

Traditional automakers were thought to be doomed in the long term because they were saddled with stranded assets and preferred high-growth startup with lofty dreams.

This type of investor was preyed upon byMilton. He told CNBC in June 2020 that the generation that is investing now cares more about the environment than it does about revenue. They don't care that you're changing the world and you're going to reduce emissions more than anyone else.

Mary Barra didn't explain what technology her company was securing when she signed the deal. GM looked to bask in the collective shine of its charismatic founder, who was a forward- thinking, fresh, visionaryentrepreneur capable of rivaling Musk's allure, according to a research report.

Milton’s fall

It dropped a bombshell report that the truck featured in its promotional video had no drivetrain at all and was filmed cleverly as it rolled down a hill, documenting a raft of further misstatements that took advantage of investors' willingness to invest.

Anderson's professional short-selling firm said it had never seen a level of deception like that at a public company.

There was a point-by-point rebuttal promised. All he could give was half-dsenial.

He left his position as CEO shortly afterwards. The Securities and Exchange Commission filed charges against the man. The SEC brought fraud charges against the company and they agreed to pay $125 million in fines.

The company has a market cap of $2 billion, even though its stock is currently trading over 5% lower. Thanks to the efforts of its partner, CNH Industrial, that is.

He will have to answer for his years of deception.

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