Shares in Nikola are diving 23% in the pre-market session after its founder Trevor Milton stepped down as executive chairman of the board amid allegations that the electric truckmaker is an “intricate fraud built on dozens of lies” and misled investors about its business prospects.
Nikola (NKLA) said that Milton approached the Board of Directors and proposed to voluntarily leave as executive chairman. The Board accepted his proposal, and Stephen Girsky, former General Motors Vice Chairman and a member of Nikola’s Board, has been appointed Chairman of the Board, with immediate effect.
“Nikola is truly in my blood and always will be, and the focus should be on the company and its world-changing mission, not me” said Milton. “We’ve built a deep bench of talent over the years, and I am confident that Nikola’s Chief Executive Officer, Mark Russell, and the rest of the leadership team will advance