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Nikola founder Trevor Milton sentenced to four years in prison

Credit: Nikola

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Trevor Milton, the founder of zero-emission truck manufacturer Nikola, has been sentenced to four years in prison for multiple counts of fraud.

After U.S. prosecutors last week suggested a sentence of 11 years for Milton, New York-based U.S. District Judge Edgardo Ramos sentenced the Nikola founder to four years in prison on two counts of wire fraud and one count of securities fraud. Milton was found guilty in the case last year, and earlier this year, he was ordered to pay $165 million in damages back to Nikola.

Milton has denied wrongdoing and has requested probation, saying he hadn’t intended to mislead investors about the capabilities of its electric semi-truck. He’s also expected to appeal the conviction, and Judge Ramos said on Monday that Milton would be allowed to remain free on bail during the appeal process.

“I was not a very seasoned CEO,” Milton said.

The decision follows a series of incidents in 2019 and 2020, in which Milton presented misleading details about its Nikola One electric semi-truck. The fraud came to light after a video of the Nikola One rolling had surfaced, making the truck seem as if it had been driving, while it was later discovered that, in fact, the semi had not been self-propelled at all.

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Many of the misleading statements had also been made via public YouTube videos and other online platforms, making the white-collar fraud case unique compared to many others in which executives have defrauded investors through corporate filings, financial statements and other official documentation.

After news had surfaced of the fraudulent claims, Milton stepped down as Nikola’s executive chairman in September 2020, and federal prosecutors later charged him in July 2021. Milton was officially convicted last October.

Milton requested a new trial following the trial’s verdict last year, claiming that the jury had convicted him based on incorrect instructions from the judge and adding that one juror had even lied to make it onto the panel. The judge denied the request in August.

Nikola shares peaked in mid-2020 at nearly $80, causing the truck maker’s market capitalization to surge past $30 billion. Since then, Nikola’s stock has dropped to under $1 per share for much of the year, risking delisting from Nasdaq. The stock shortly rebounded to around $3 in August before dropping back down to less than $1.

Nikola CFO resigns in truck maker’s latest executive shake-up

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What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla gets new information request from NHTSA on Robotaxi rollout

Tesla has been contacted by the NHTSA regarding plans for the Robotaxi rollout and how it will handle poor weather.

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Credit: Tesla

Tesla has been contacted by the National Highway Traffic Safety Administration (NHTSA) regarding its planned rollout of a Robotaxi platform in Austin, Texas.

The agency sent a letter to Tesla Field Quality Director Eddit Gates, seeking more information on exactly how the company plans to operate the fleet in poor weather conditions. The NHTSA wants to know how Tesla’s technology and operational use cases will “assess the ability of Tesla’s system to react appropriately to reduced roadway visibility conditions.”

Additionally, the NHTSA said it would like additional information on Tesla’s development of technologies for use in ‘robotaxi’ vehicles to understand how Tesla plans to evaluate its vehicles and driving automation technologies for public roads.

Tesla has already started operating a supervised version of the Robotaxi platform for employees in both Austin and San Francisco. This limited rollout has completed thousands of rides already, but differs from the version it plans to roll out in the coming weeks in Austin, as it currently has a driver sitting in the driver’s seat.

Tesla says it has launched ride-hailing Robotaxi teaser to employees only

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They are there to supervise the vehicle and ensure safety early on in the program.

The letter that was sent to Tesla on May 8 is part of a greater investigation that was opened by the NHTSA on October 17, titled “FSD Collisions in Reduced Roadway Visibility Conditions.”

The agency said the purpose of the “Preliminary Evaluation of FSD” was to assess:

  • The ability of FSD’s engineering controls to detect and respond appropriately to reduced roadway visibility conditions;
  • Whether any other similar FSD crashes have occurred in reduced roadway visibility conditions and, if so, the contributing circumstances for those crashes; and
  • Any updates or modifications from Tesla to the FSD system that may affect the performance of FSD in reduced roadway visibility conditions. In particular, this review will assess the timing, purpose, and capabilities of any such updates, as well as Tesla’s assessment of their safety impact.

Tesla is required to respond to the NHTSA’s request by June 19.

INIM-PE24031-62887 by Joey Klender on Scribd

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Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas

The recent footage featured an apparent test car that looks very similar to a vehicle that was spotted in the Fremont Factory last month.

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Credit: @JoeTegtmeyer/X

Tesla has been very secretive about the “more affordable models” that it intends to start producing in the first half of 2025, but the company does seem to be quite busy testing something interesting in the Giga Texas complex. This was, at least, as per recent aerial footage from a longtime Giga Texas watcher.

The recent footage featured an apparent test car that looks very similar to a vehicle that was spotted in the Fremont Factory last month. 

New Giga Texas Sighting

In a post on X, longtime Giga Texas watcher and drone operator Joe Tegtmeyer noted that he recently spotted a rather unique test car in the factory complex. The vehicle was under a car cover, but it was evidently missing its body panels and roof. Interestingly enough, it seemed to be shaped like a Model Y (it even had Model Y wheels), though it looked a bit more compact than another Model Y that was parked next to it.

Interestingly enough, a rather similar test car was spotted at another Tesla plant, the Fremont Factory in California, last month. Tesla watcher Met God in Wilderness, who has been posting aerial videos of the Fremont Factory for years, shared some footage from a drone flyover in mid-April. One of the vehicles captured in the flyover was an apparent test car that was parked next to fully-built Model Y and Model S vehicles. The test car in this sighting also looked like a compact crossover, and it was also missing its roof and body panels. 

Tesla’s Affordable Cars

In the Q1 2025 Update Letter, Tesla noted that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” In the Q1 earnings call, Tesla VP of Vehicle Engineering Lars Moravy stated that Tesla’s affordable cars would resemble the company’s existing vehicles, though they will be more affordable.

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These comments suggested that Tesla’s affordable cars, which have been informally dubbed by the EV community as the “Model 2 or Model Q,” will look a lot like its two mass market vehicles, the Model 3 sedan and the Model Y crossover. “Models that come out in the next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moray stated.

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Elon Musk invited to attend investment summit in Saudi Arabia: report

Musk’s reported invitation comes on the sidelines of United States President Donald Trump’s visit to the Middle East.

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Joel Kowsky, Public domain, via Wikimedia Commons

A planning note reported viewed by Reuters has indicated that Tesla CEO Elon Musk has been invited to a Saudi-U.S. investment forum in Riyadh, the capital of Saudi Arabia. The event is expected to be held on Tuesday.

Musk’s reported invitation comes on the sidelines of United States President Donald Trump’s visit to the Middle East.

Musk’s Invitation

As per Reuters, the upcoming investment forum is expected to be attended by some of the most distinguished people in the investment world. These include the CEOs of high-profile companies such as Blackrock, Citigroup, IBM, Boeing, Delta Airlines, American Airlines, and United Airlines, among others, the publication noted. 

Considering the other attendees of the event, Elon Musk would likely fit right thanks to his leadership of companies like Tesla, SpaceX, and xAI, as well as his close ties with the Trump administration through his work at the Department of Government Efficiency (DOGE).

Musk and Saudi Arabia

Elon Musk’s relationship with Riyadh have notably improved since the start of Trump’s second term as United States president. Highlighting this improvement was Tesla’s launch in Saudi, which was held in April. Tesla’s launch was a notable event based on videos posted of the occasion, with the company showcasing some of its most exciting products, including Optimus, the Cybertruck, and the Cybercab, its self-driving robotaxi.

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Tesla’s launch in Saudi Arabia, as well as his reported invitation to the upcoming investment forum, suggests that the CEO’s feud with Yasir Al Rumayyan, head of the $925 billion Public Investment Fund, has ended. The PIF Head was among the people involved in Elon Musk’s infamous “funding secured” tweet in 2018, which resulted in hefty fines and his removal as Tesla’s Board Chair. The PIF also sold its Tesla holdings and invested in another EV company, Lucid Group Inc.

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