Nikola settles with SEC
Nikola Corp., a Phoenix-based manufacturer of zero-emissions heavy trucks, has confirmed that it reached a settlement with federal regulators over allegedly misleading statements made by Trevor Milton, its founder and former CEO.
The company will pay $125 million in civil penalties in five installments over two years as part of the settlement with the U.S. Securities and Exchange Commission. The agreement “resolves
and concludes all government investigations of Nikola,” the company said.
The first payment was to be made by the end of 2021, with the remaining installments paid semiannually through 2023. Nikola reserved $125 million
against its third-quarter earnings to account for the settlement.
When the SEC announced charges in July, officials accused Milton of using social media platforms to mislead investors about the company’s technological and production capabilities, among other issues.
“Having chosen to promote Nikola through social media, Milton was obligated under the securities laws to communicate completely, accurately and truthfully,” said Gurbir S. Grewal, director of the SEC’S Division of Enforcement, said at the time.
The company on Dec. 17 said it made its first vehicle deliveries to Total Transportation Services. The Arizonamade battery-electric trucks operate in trial runs around the ports of Los Angeles and Long Beach, where air pollution is worsened by truck and train traffic and ships anchoring in and near the ports.
Nikola, which was founded in 2015, also has started making trucks in Ulm, Germany.