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Nikola News: NKLA Stock Sinks 21% Following Founder’s Departure Amid Fraud Allegations

Nikola (NASDAQ:NKLA) news for Monday includes the departure of founder and executive chairman Trevor Milton dropping NKLA stock.

Nikola Stock: Image on phone screen
Source: Stephanie L Sanchez / Shutterstock.com

Milton’s decision to leave the company has Stephen Girsky taking his place as the next executive chairman of the Board. Girsky is the former vice chairman of General Motors (NYSE:GM) and is also a member of the NKLA Board.

Mark Russell, CEO of Nikola, said this about the news.

“Along with the rest of the management team, I will continue to work closely with Steve and the Board to advance Nikola’s vision for the future. Our priorities remain unchanged and, in collaboration with our partners, we are laser-focused on executing on our strategic initiatives and laying the groundwork to become a vertically integrated zero-emissions transportation solutions provider.”

Milton’s departure from Nikola comes after the company faced allegations of fraud from a short seller last week. Hindenburg Research is behind these allegations and claims that the company oversold the importance of a recent partnership with General Motors.

Nikola is refuting these claims and also takes issue with many of the other statements made in the report. The electric truck company claims that Hindenburg Research intentionally released its report after the partnership announcement in an effort to drop prices of NKLA stock in an effort to manipulate the market.

NKLA stock was down 20.5% and GM stock was down 5.6% as of Monday afternoon.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/09/nikola-news-hammers-nkla-stock/.

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