09.21.20 - We previously discussed the short-seller activist research report released by Hindenburg Research sounding the alarm around potential fraud at the EV company Nikola. The previous piece we wrote was to just bring awareness to the report and that several hedge funds most recent 13F filings had revealed large short positions against the company prior to the release of the report.
Now it has been announced that Nikola’s chairman, Trevor Milton, is involuntarily stepping down from the EV company, effective immediately. There is also reportedly an unconfirmed DOJ investigation against Milton. The company’s stock dropped another 30% in early trading today. Nikola was previously worth $30 billion, today it is worth less than $13 billion.
Milton will be succeeded by Stephen Girsky - a former GM executive, automotive analyst at Morgan Stanley and executive at Private Equity Firm Centerbridge - who joined GM in 2009 when the company emerged from a government structured bankruptcy. GM currently still holds an 11% stake in Nikola.
Source: Brookfield Brief