Nikola executives seek to calm investor anxiety after fraud claims delay $2 billion deal with GM, shares jump

Nikola Motor Company

Source: Nikola Motor Company

Nikola executives sought Wednesday to calm investor anxiety following fraud claims involving the company’s technology and its founder, Trevor Milton, who resigned as executive chairman last week.

Nikola Executive Chairman Steve Girsky and CEO Mark Russell said the company’s production timeline and factory plans remain on track, even as controversy over Milton’s departure appears to call into question Nikola’s $2 billion deal with General Motors that was scheduled to close Tuesday. While Russell acknowledged that the negotiations continue, he declined to discuss more details.

Girsky, in some of his first public comments since Milton’s resignation, said Nikola’s board remains “very supportive” of Russell and his team’s ability to achieve previously announced production targets.

“We’re excited about the vision. The vision excited a lot of people. The job now is about execution,” Girsky, a former GM executive, told CNBC during a phone interview Wednesday.

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