The co-founder and former CEO of the company was namedTrevor.
Isiah Sloan/Nikola.
The EV company agreed to pay $125 million to the US Securities and Exchange Commission to settle charges that it deceived investors about its products, business prospects and technical capabilities.
The startup, which focuses on battery-electric and hydrogen-electric semi trucks, said last month that it had set aside money in case of a settlement with the SEC.
On a year-to-date basis, shares have fallen 39%, but were up 3.6% in premarket trade. In June 2020 the company went public.
The SEC said in a statement Tuesday that it had settled litigation against the co- founder and former chief executive of the company. The agency said he embarked on a public relations campaign that was meant to inflate and maintain the stock price of the company before a single commercial product had been made.
The SEC said that Milton misled investors about his technological advancements, truck reservations and orders, and financial outlook. It said that it found that the refueling time of its prototype vehicles was misrepresented or omitted.
The SEC's enforcement division found that the company was responsible for misleading statements and other deceptions, and that it was also responsible for misrepresenting the true state of the company's business and technology. The remedies today's settlement provides are strong and merited by the misconduct.
Under the terms of the resolution, it doesn't admit or deny the SEC's findings, and the settlement resolves all government investigations. $125 million will be paid to the SEC in five installments. The first installments will be paid by the end of the year and the rest will be paid semiannually through the year 2023.
The company said it will build out its hydrogen infrastructure, including dispensers.
Business Insider has an original article.
