Connect with us
Trevor_Milton Trevor_Milton

News

Former Nikola CEO Trevor Milton to pay $167 million to Nikola: U.S. Judge

Miljøstiftelsen ZERO, CC BY 2.0 , via Wikimedia Commons

Published

on

Former Nikola CEO Trevor Milton would be paying Nikola, the company he founded, $167.7 million over his false and misdealing statements to the public. The decision was made by U.S. District Judge Diane Humetewa in Phoenix on Monday. 

Milton was convicted by jurors in Manhattan in October 2022 on two counts of wire fraud and two counts of securities fraud. Prosecutors at the time argued that Milton misled investors about some of Nikola’s projects, including the hydrogen/electric Badger pickup truck, which was not built, and the Nikola One, a supposed hydrogen semi truck that was rolled down a hill to show that it was in motion.

In her decision, Judge Humetewa upheld a divided arbitration panel’s November 2023 award in the electric truck maker’s favor. As noted in a Reuters report, Judge Humetewa stated that the panel had acted within its authority in interpreting a separation agreement between Milton and Nikola that the former CEO signed when he stepped down from his chief executive post in September 2020. 

The panel had concluded that Milton was liable to pay 97% of Nikola’s $125 million fine, which the electric truck maker paid to settle a civil fraud case that was filed by the U.S. Securities and Exchange Commission (SEC). The panel also noted that Milton was liable to cover almost $46.5 million in legal fees.

Milton, for his part, has argued that the award to Nikola was excessive. He also claimed that the award amounted to “rough justice” since the panel effectively ignored the “relative fault” of Nikola’s directors, executives, and employees. Judge Humetewa, however, maintained that the panel’s analysis—which assigned a 3% fault to Nikola for failing to stop Milton from misleading investors—was plausible. 

Advertisement

Nikola lawyer Marc Kasowitz stated that the electric truck maker was “gratified but not surprised” at the court’s decision considering the former CEO’s pattern of sharing false and misleading public statements. Kasowitz noted that Nikola is looking forward to getting its award from its former CEO. “We look forward to collecting the award,” the lawyer noted. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

Tesla takes huge step with Cybercab in new spotting

Published

on

Credit: Met God in Wilderness | YouTube

Tesla has taken a huge step forward with its Cybercab project, as the vehicle has been spotted on the Fremont Test Track for the first time.

Typically, when cars are spotted on the Fremont Test Track, it means Tesla has begun advancing the development of that specific project. With Cybercab production slated for 2026, it seems Tesla is ready to get things moving.

The Cybercab was unveiled one year ago tomorrow, at the “We, Robot” event in Los Angeles.

Tesla Robotaxi Cybercab: Seats, price, special features, release date, and more

Tesla has been hoping to get Cybercab production started in early 2026. With a few months until then, the program has taken some leaps, including the recent start of crash testing of the vehicle at the Fremont Factory in Northern California.

Some of these units have made their way to Gigafactory Texas at Tesla’s crash testing facility:

Now, it has taken another step as Tesla has officially started testing the vehicle at the Fremont Test Track:

Here’s when vehicles in Tesla’s lineup were first spotted on the Fremont Test Track and then launched:

Vehicle
First Spotted on Fremont Test Track
Launch Date (Production Start/First Deliveries)
Model Y
December 12, 2019
January 2020
Tesla Semi
March 8, 2021
December 1, 2022 (Limited to pilot program participants)
Cybertruck
December 10, 2021
November 2023
Cybercab
October 9, 2025
Early 2026

Timeframes for when Tesla vehicles hit the Fremont Test Track and when their production and deliveries begin certainly vary.

However, the Cybercab being spotted marks a significant step forward for Tesla, as it indicates the company is nearing a major milestone in production, whether for deliveries or on-road testing.

It does seem as if Tesla could employ the Cybercab for its Robotaxi program in Austin, Texas, and Northern California.

With more markets expected to launch Robotaxi rides soon, it could be a formidable challenge for the new vehicle, especially if Tesla can initiate rides without a Safety Monitor.

Continue Reading

News

Chevy answers Tesla’s new ‘Standard’ offerings with an actually affordable EV

Published

on

Credit: KilowattStation | X

Chevy answered Tesla’s new Standard Model 3 and Model Y offerings with its second-generation Bolt EV, a car that actually appeals to those who were looking for affordability.

Earlier this week, Tesla unveiled the Model 3 and Model Y Standard, two stripped-down versions of the cars of the same name it already offers. The Long Range versions are now labeled as “Premium,” while the Performance configurations stand alone.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

However, many people were sort of upset with what Tesla came to market with. For well over a year, it has been transparent that it was planning to develop affordable models, and this year, it was forced to take action to counter the loss of the $7,500 EV tax credit.

The Model 3 Standard starts at $36,990, while the Model Y Standard comes in at $39,990. While these are cheaper than the company’s Premium offerings, many fans said that Tesla missed the mark with the pricing, as these numbers are not necessarily “affordable.”

At the very least, they will likely miss the mark in helping Tesla regain annual growth rates for its deliveries. Tesla will likely rely on its “unboxed process,” which will be used to manufacture the Cybercab and potentially other affordable models in the future. These will be priced at below $30,000.

Other carmakers are making their moves and were able to undercut Tesla’s new Standard offerings, Chevrolet being one of them.

This week, the company launched its second-gen Bolt EV, which starts at just $28,995.

Here are the full specs:

  • 65 kWh LFP battery
  • 255 miles of range (EPA estimated)
  • Native NACS port for Tesla Supercharger accessibility without an adapter
  • Up to 150 kW charging speed
  • Bidirectional power of 9.6 kW
  • Front-Wheel-Drive
  • 10-80% charging in just 26 minutes
  • No Apple CarPlay or Android Auto
  • SuperCruise capable
  • 11.3″ touchscreen, 11″ digital gauge cluster
  • 16 cubic feet of cargo capacity
  • Other Trims
    • RS – $32,000
    • Base LT – $28,995
  • Deliveries begin in early 2026

Let’s be frank: Tesla fans are unlikely to bat an eye at other OEM offerings. However, first-time EV buyers might be looking for something more price accessible, so vehicles under $30,000 are where they will look first, at least for most people.

If money isn’t an option, people will consider spending a minimum of $37,000 on a new vehicle, especially an EV, as a first-time owner.

The Bolt EV could be something that does well, especially considering its one of only a handful of EVs that are priced at around $30,000 brand new in the U.S.

The others are:

  • Nissan Leaf S ($28,140)
  • Mini Cooper SE ($30,900)
  • Fiat 500e ($32,500)

While these cars are priced at around $30,000 and are affordable, they each offer minimal range ratings. The Nissan Leaf S and Fiat 500e have just 149 miles, while the Mini Cooper SE has 114 miles.

Continue Reading

News

Tesla Model S makes TIME’s list of Best Inventions

Published

on

(Credit: Tesla)

Tesla’s flagship sedan, the Model S, has officially been named one of TIME Magazine’s Best Inventions of the 2000s. It joins its sibling, the Model 3, which made the list in 2017.

The Model S is among the most crucial developments in the automotive industry in the last century.

Just as the Ford Model T made its mark on passenger transportation, becoming the first combustion engine vehicle to be successfully developed and marketed at a time when horse and buggy were the preferred mode of transportation, the Model S revolutionized things a step further.

Although it was not the first EV to be developed, the Tesla Model S was the EV that put EVs on the map. In 2012, TIME recognized the Model S as a piece of technology that could truly transform the car industry.

The publication wrote:

“This electric four-door sedan has the lines of a Jaguar, the ability to zip for 265 miles (426 km) on one charge—that’s the equivalent of 89 m.p.g. (2.6 L/100 km)—and touchscreen controls for everything from GPS navigation to adjusting the suspension.”

Looking back, TIME was right on. The Tesla Model S was truly a marvel for its time, and it, along with the OG 2008 Roadster, can be seen as the first two EVs to push electrification to the mainstream.

As TIME described this year, the Model S “proved to be a game-changing experience for electric vehicles,” and it ended up truly catalyzing things for not only the industry, but Tesla as well.

The Model S acted as a fundraiser of sorts for future vehicles, just as the Model X did. They paved the way for the Model 3 and Model Y to be developed and offered by Tesla at a price point that was more acceptable and accessible to the masses.

The Current State of the Tesla Model S

The Model S contributes to a very small percentage of Tesla sales. The company groups the Model S with the Model X and Cybertruck in its quarterly releases.

Last year, that grouping sold 85,133 total units, a small percentage of the 1.789 million cars it delivered to customers in 2024.

Things looked to be changing for the Model S and the Model X this year, as Tesla teased some improvements to the two cars with a refresh. However, it was very underwhelming and only included very minor changes.

Lucid CEO shades Tesla Model S: “Nothing has changed in 12 years now”

It appeared as if Tesla was planning to sunset the two cars, and while it has not taken that stance yet, it seems more likely that the company will begin taking any potential options to heart.

CEO Elon Musk said a few years ago that the two cars were only produced due to “sentimental reasons.”

Continue Reading

Trending