Connect with us

News

Nikola Motors loses founder Trevor Milton amid SEC and DOJ probe

Nikola Motors' new headquarters in Phoenix, AZ. (Credit: Trevor Milton/Nikola Motor/Twitter)

Published

on

It appears that Nikola is facing a very steep hill ahead, with reports indicating that founder Trevor Milton has departed from the company, effective immediately. The update was reported by esteemed semi-truck-focused publication Freightwaves, which cited sources close to the embattled hydrogen fuel cell truck maker. 

Amidst his departure from Nikola, Trevor Milton will also be resigning as Executive Chairman. He will remain as one of the company’s largest shareholders, though he would reportedly not have any say about how Nikola will be managed moving forward. The publication’s sources noted that the decision to resign and leave was Milton’s, and it was done to protect Nikola and his investment. 

“Nikola is truly in my blood and always will be, and the focus should be on the Company and its world-changing mission, not me. So I made the difficult decision to approach the Board and volunteer to step aside as Executive Chairman. Founding Nikola and growing it into a company that will change transportation for the better and help protect our world’s climate has been an incredible honor,” Milton noted in a press release.

To date, it is estimated that Milton owns about 82 million shares of Nikola. That translates to about 20% of the hydrogen fuel cell truck maker, or about $2.8 billion. 

https://twitter.com/nikolatrevor/status/1307921526595952640?s=20

With Milton stepping down, Stephen Girsky, former Vice Chairman of General Motors Co. and a member of Nikola’s Board, has been appointed Chairman of the Board, effective immediately. Milton noted in the company’s press release that he is confident Girsky is the right person to lead Nikola as the company moves forward. He also remained optimistic about Nikola’s leadership, which he believes could allow the company to reach its full potential.

Advertisement

“As we move forward, I am confident Steve is the right leader to guide our vision at the Board level. In addition to being an early believer and supporter of Nikola, Steve has more than 30 years of experience working with OEM leaders, suppliers, dealers, labor leaders and national policy makers, and has served as a director of numerous public companies.”

“We’ve built a deep bench of talent over the years, and I am confident that Nikola’s Chief Executive Officer, Mark Russell, supported by Chief Financial Officer, Kim Brady, and the rest of the leadership team will advance our goal of making Nikola the global leader in zero-emissions transportation. I want to thank all of Nikola’s employees, investors and partners who have shared in my vision and rallied behind Nikola during this time,” Milton noted.

Girsky, for his part, has expressed his excitement for his new appointment. “I want to thank Trevor for his visionary leadership and significant contributions to Nikola since its founding. Trevor saw the possibility of creating an end-to-end zero-emission transportation system when the industry was still in its nascent stages and took action to build the Nikola of today, with world-class partnerships, groundbreaking R&D, and a revolutionary business model. I know I speak for everyone at Nikola in our gratitude and in wishing him all the best,” he said.

Milton’s departure marks yet another remarkable development in the Nikola saga, which has gone on a full roller coaster ride in recent weeks. Following a blockbuster announcement of a manufacturing deal with GM for its Badger pickup, Nikola was shaken by a report from short-seller firm Hindenburg Research, which alleged that Milton and the company had a history of misleading investors and the public. 

Among the key allegations from Hindenburg stated that Nikola has misrepresented the progress it has made with its technologies and vehicle projects. Nikola and Milton later posted a response to the firm’s accusations, though the release only addressed a fraction of Hindenburg’s allegations. Together with its response, Nikola also contacted the SEC, stating that it welcomes the regulator’s involvement. A later report from The Wall Street Journal indicated that the SEC review into the company was in its early stages, and that the US Justice Department has joined the investigation into Nikola. 

Advertisement

Nikola has garnered a reputation for being polarizing. While the company is lauded by its supporters for its grand vision of a zero-emissions future dominated by hydrogen-powered long-haulers, critics have argued that Milton’s claims about Nikola’s vehicles were not realistic. The former Nikola executive’s active presence on Twitter further added to the company’s skirmishes with its outspoken critics. 

While Milton’s departure will likely be a blow to Nikola, the company appears to have legitimate projects currently underway. Amidst the controversy surrounding the Hindenburg report, for example, GM Chief Executive Mary Barra stated that the veteran American automaker remains committed to the Nikola deal. With this in mind, the release of the Badger may still happen, though it would be interesting to see how Nikola moves on without its founder. “Our company has worked with a lot of different partners. We’re a very capable team that has done the appropriate diligence,” she said. 

Read Nikola’s full press release about Trevor Milton’s departure here.

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.

Comments

News

Tesla teases new market entrance with confusing and cryptic message

Published

on

(Credit: Tesla)

Tesla teased its entrance into a new market with a confusing and what appeared to be cryptic message on the social media platform X.

The company has been teasing its entrance into several markets, including Africa, which would be a first, and South America, where it only operates in Chile.

In September, Tesla started creating active job postings for the Colombian market, hinting it would expand its presence in South America and launch in a new country for the first time in two years.

Tesla job postings seem to show next surprise market entry

The jobs were related to various roles, including Associate Sales Manager, Advisors in Sales and Delivery, and Service Technicians. These are all roles that would indicate Tesla is planning to launch a wide-scale effort to sell, manage, and repair vehicles in the market.

Last night, Tesla posted its latest hint, a cryptic video that seems to show the outline of Colombia, teasing its closer than ever to market entry:

This would be the next expansion into a continent where it does not have much of a presence for Tesla. Currently, there are only two Supercharger locations on the entire continent, and they’re both in Chile.

Tesla will obviously need to expand upon this crucial part of the ownership experience to enable a more confident consumer base in South America as a whole. However, it is not impossible, as many other EV charging infrastructures are available, and home charging is always a suitable option for those who have access to it.

Surprisingly, Tesla seems to be more concerned about these middle-market countries as opposed to the larger markets in South America, but that could be by design.

If Tesla were to launch in Brazil initially, it may not be able to handle the uptick in demand, and infrastructure expansion could be more difficult. Brazil may be on its list in the upcoming years, but not as of right now.

@teslarati 🚨🚨 Tesla Full Self-Driving and Yap is the best driving experience #tesla #fsd #yapping ♬ I Run – HAVEN.

Continue Reading

News

Tesla expands crucial Supercharging feature for easier access

It is a useful tool, especially during hours of congestion. However, it has not been super effective for those who drive non-Tesla EVs, as other OEMs use UI platforms like Google’s Android Auto or Apple’s iOS.

Published

on

tesla supercharger
Credit: Tesla

Tesla has expanded a crucial Supercharging feature that helps owners identify stall availability at nearby locations.

Tesla said on Tuesday night that its “Live Availability” feature, which shows EV owners how many stalls are available at a Supercharger station, to Google Maps, a third-party app:

Already offering it in its own vehicles, the Live Availability feature that Teslas have is a helpful feature that helps you choose an appropriate station with plugs that are immediately available.

A number on an icon where the Supercharger is located lets EV drivers know how many stalls are available.

It is a useful tool, especially during hours of congestion. However, it has not been super effective for those who drive non-Tesla EVs, as other OEMs use UI platforms like Google’s Android Auto or Apple’s iOS.

Essentially, when those drivers needed to charge at a Supercharger that enables non-Tesla EVs to plug in, there was a bit more of a gamble. There was no guarantee that a plug would be available, and with no way to see how many are open, it was a risk.

Tesla adding this feature allows people to have a more convenient and easier-to-use experience if they are in a non-Tesla EV. With the already expansive Supercharger Network being available to so many EV owners, there is more congestion than ever.

This new feature makes the entire experience better for all owners, especially as there is more transparency regarding the availability of plugs at Supercharger stalls.

It will be interesting to see if Tesla is able to expand on this new move, as Apple Maps compatibility is an obvious goal of the company’s in the future, we could imagine. In fact, this is one of the first times an Android Auto feature is available to those owners before it became an option for iOS users.

Apple owners tend to get priority with new features within the Tesla App itself.

Continue Reading

Elon Musk

Elon Musk’s Boring Co goes extra hard in Nashville with first rock-crushing TBM

The Boring Company’s machine for the project is now in final testing.

Published

on

Credit: The Boring Company/X

The Boring Company is gearing up to tackle one of its toughest projects yet, a new tunnel system beneath Nashville’s notoriously tough limestone terrain. Unlike the soft-soil conditions of Las Vegas and Austin, the Music City Loop will require a “hard-rock” boring machine capable of drilling through dense, erosion-resistant bedrock. 

The Boring Company’s machine for the project is now in final testing.

A boring hard-rock tunneling machine

The Boring Company revealed on X that its new hard-rock TBM can generate up to 4 million pounds of grip force and 1.5 million pounds of maximum thrust load. It also features a 15-filter dust removal system designed to keep operations clean and efficient during excavation even in places where hard rock is present.

Previous Boring Co. projects, including its Loop tunnels in Las Vegas, Austin, and Bastrop, were dug primarily through soft soils. Nashville’s geology, however, poses a different challenge. Boring Company CEO and President Steve Davis mentioned this challenge during the project’s announcement in late July.

“It’s a tough place to tunnel, Nashville. If we were optimizing for the easiest places to tunnel, it would not be here. You have extremely hard rock, like way harder than it should be. It’s an engineering problem that’s fairly easy and straightforward to solve,” Davis said.

Advertisement

Nashville’s limestone terrain

Experts have stated that the city’s subsurface conditions make it one of the more complex tunneling environments in the U.S. The Outer Nashville Basin is composed of cherty Mississippian-age limestone, a strong yet soluble rock that can dissolve over time, creating underground voids and caves, as noted in a report from The Tennessean.

Jakob Walter, the founder and principal engineer of Haushepherd, shared his thoughts on these challenges. “Limestone is generally a stable sedimentary bedrock material with strength parameters that are favorable for tunneling. Limestone is however fairly soluble when compared to other rack materials, and can dissolve over long periods of time when exposed to water. 

“Unexpected encounters with these features while tunneling can result in significant construction delays and potential instability of the excavation. In urban locations, structures at the ground surface should also be constantly monitored with robotic total stations or similar surveying equipment to identify any early signs of movement or distress,” he said.

Continue Reading

Trending