Thursday, July 29, 2021

"Nikola Founder Trevor Milton Charged With Lying to Investors " (NKLA)

 Ya think?

From the Wall Street Journal:

Federal prosecutors say alleged scheme targeted individual investors

Trevor Milton, the founder of Nikola Corp. NKLA -7.43% and onetime executive chairman of the electric-truck startup, was indicted Thursday on securities-fraud charges for what prosecutors said was a scheme to mislead investors about the company’s product and technology development.

Mr. Milton faces two counts of securities fraud and one count of wire fraud, according to the indictment. The U.S. attorney’s office in Manhattan, which brought the charges, is set to make an announcement about the indictment on Thursday morning.

A spokesman for Mr. Milton didn’t immediately comment. Last year, Mr. Milton said on Twitter that he intended to defend himself against “false allegations.” He resigned from Nikola in September as concerns mounted about the startup darling that had attracted backing from some of the industry’s biggest names.

Nikola wasn’t charged. The company said that Mr. Milton hasn’t been involved in the company’s operations or communications since his resignation. “Nikola has cooperated with the government throughout the course of its inquiry,” the company’s statement said. “We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities.”....


The stock is changing hands at $13.03 down $1.17 ( -8.21%) and as we said about competitor Lordstown Motors (RIDE):

"Why is there still a bid?"

June 14
Electric Truck SPAC Lordstown Motors: CFO and CEO Resign (RIDE)
Why is there still a bid?
In premarket action the stock is changing hands at $10.04 down $1.37 (-12.01%)

June 9 (it was at $11.22)
Electric Truck Startup, Lordstown Motors Gets a "Going Concern", May Be Headed For Bankruptcy Court
And why is there still a bid?
As the old joke goes, third marriages are proof of the triumph of hope over experience.
Here's an experience anecdote:....Sometimes markets confuse me.....

RIDE $6.42 down $0.14 (2.13%)