Nikola Corporation, an American company with the concept of zero-emissions vehicles, Executive Chairman Trevor Milton stepped down after a short seller’s report, CNN reported Monday.
Earlier, the company saw its stock prices plunging last week after a report published by Hindenburg Research. Hindenburg accused Trevor Milton of presenting a prototype truck that was not closer to the market expectations, according to the report.
“The focus should be on the company and its world-changing mission, not me. I intend to defend myself against false accusations leveled against me by outside detractors,”
– Nikola Founder,Trevor Milton.
The report also added that the company overvalued the actual worth of a business deal.
Reacting to the short seller’s report Milton resigned from the board which was confirmed by a statement on Sunday. However, Nikola Corporation denied the allegations previously and also threatened Hindenburg with legal actions.
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Nikola Shares Plunged for Two Days
Nikola stock prices dropped 11% on Thursday and 14.5% on Friday since the report was published. The stocks, however, recovered 10% on Monday after the heavy loss last week.
In a response to the situation, the company said, “These allegations by the short seller are false and misleading, and designed to manipulate the market to profit from a manufactured decline in Nikola’s stock price.”
On Friday, The electric vehicle company also announced that they hired legal experts to take legal actions against the short seller report makers.
Hindenburg said to the reporters that Nikola’s response was “completely inadequate.”
They also added that Nikola did not deny some of the allegations rather claimed that they were presented “in a misleading and disparaging light.”
CNN confirmed that the Executive Chairman position will be filled by Stephen Girsky, a former vice chairman of General Motors (GM).
“The focus should be on the company and its world-changing mission, not me. I intend to defend myself against false accusations leveled against me by outside detractors,” Milton posted on Twitter.
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