Rolling a Truck Down a Hill... The Fate of the US Founder Dreaming of a 'Second Tesla'

Guilty Verdict for Nikola Electric Truck Company’s Trevor Milton on Fraud Charges
Market Cap That Surpassed Ford Motor Collapses Dramatically

Trevor Milton, the founder of American electric truck company Nikola, was found guilty of fraud. The photo shows Nikola's battery electric truck undergoing a test drive in Turin, Italy, last July. Photo by Yonhap News

[Asia Economy Reporter Hwang Sumi] Trevor Milton, the founder of Nikola, a U.S. electric truck company once hailed as the "second Tesla," was found guilty of fraud on the 14th (local time). He is accused of deceiving investors by promoting unfinished technology.

Nikola, which planned to manufacture and sell large trucks powered by electric batteries and hydrogen fuel, attracted investor attention as a startup dubbed the "second Tesla." Riding the wave of popularity, it was listed on the U.S. stock market in June 2020 and at one point surpassed Ford Motor Company in market capitalization.

However, the stock price plummeted amid allegations of technology fraud. In September 2020, short-seller Hindenburg Research released a report accusing Milton, then CEO of Nikola, of exaggerating the technology.

The promotional video posted on YouTube became particularly problematic. Milton had promoted the video of a hydrogen-powered truck as a "fully functional finished vehicle," but it was revealed that the truck did not actually have a fuel cell or hydrogen gas storage tank installed. Additionally, Milton produced a video showing the truck rolling down a hill, disguising it as if it was moving under its own power.

Milton strongly denied the allegations, calling them "lies by short-sellers," but eventually stepped down as CEO amid growing controversy.

Trevor Milton (left), founder of American electric truck company Nikola, leaving the Thurgood Marshall United States Courthouse in New York on the 12th of last month (local time). Photo by Yonhap News

Milton's trial on charges including securities fraud was held on the 14th (local time). According to The New York Times (NYT), during the trial at the U.S. District Court in Manhattan, New York, Milton's defense team argued that "Milton loved the company and therefore portrayed the technology under development as if it were already completed," asserting his innocence.

However, the jury delivered a guilty verdict, siding with the prosecution's claim that Milton engaged in fraudulent activities targeting investors for personal gain.

This content was produced with the assistance of AI translation services.