- Founder and executive chairman Trevor Milton resigns.
- The surprise move by Nikola's key promoter raised further questions regarding the company's ability to execute on its highly ambitious business plan.
- Including the requirements under the recently announced General Motors partnership, Nikola will have to raise up to $3.7 billion in additional capital over the next couple of years.
- Almost 250 million shares will become eligible for sale on December 3, including 91.6 million controlled by Trevor Milton.
- Nikola will require additional funds at the end of next year; recent events have substantially reduced the likelihood of the company successfully raising new funds. Investors should sell existing positions or outright short the shares.
For further details see:
Nikola - Company In Deep Trouble After Founder And Executive Chairman Steps Down