Prosecutors have indicted Nicolas founder Trevor Milton for security fraud in a lawsuit filed in the Southern District of New York Federal Court, claiming the agency lied about “important aspects of Nicola’s business” to increase stock prices and increase the company’s interest. Over the past two years, electric truck manufacturers (yes, we now have electric vehicles by both Nikola and Tesla) have made waves displaying a large electric truck, claiming that it can pull cargo over a huge range of 900 miles (1,450 kilometers) and only electric power, to produce 645 uninterrupted horsepower.
As expected, stock prices have risen and investments have poured in as the trucking world has turned its attention to potential pioneers. Now, prosecutors claim it’s all fog and mirrors, and instead the truck relied on more mundane energy to drive it – gravity. More specifically, prosecutors claim that Nicola did not build a functional prototype in a timely manner for a product demo, and instead the car was “pulled over a long stretch of road and then rolled down the line alley” and “driven by a cord,” running from an external power source instead of a battery.”
When buying long-distance trucks, cordless is usually preferred. The allegations are not directed at Nicola, but directly at Trevor Milton, who no longer has a role in the organization. Milton’s legal team has vehemently denied the allegations, in an email to Market Watch:
Trevor Milton is innocent. He has been wrongly accused after a flawed and incomplete investigation. He will be expelled after the trial.” The suspicion began after a report by Hindenburg Research in September 2020 brought allegations of fraud against Nicola, citing evidence behind the scenes and talking to an insider.
It was alleged that a video posted on social media showed a Nicola One truck moving, was lied to, rioted, and edited to give the impression of self-tendency – but in reality, the truck was rolling down the hill by gravity. The report was disgusting. An agreement with General Motors to acquire the cooling $2 billion equity of Nikola, the largest motoring company, resulted in a fall, and Nicola subsequently stopped work on other developments.