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☆ Ben Foldy — Reporter at The Wall Street Journal
▼ + stars: | 2023-11-19 | by ( Ben Foldy | ) www.wsj.com time to read: +1 min

Ben FoldyBen Foldy is an investigative reporter in The Journal's finance section, based in New York City. He often writes about fraud, financial crime, cryptocurrency and corporate malfeasance. Before this role, Ben covered the automotive industry from Detroit, with a focus on safety, federal policy, startups and the electric transition. In 2022, Ben reported and hosted the second season of The Journal's "Bad Bets" podcast, focused on the rise and fall of Nikola founder Trevor Milton. Ben worked for Bloomberg News and the Financial Times before joining the Journal in 2019.

Persons: Ben Foldy Ben Foldy, Ben, Nikola, Trevor Milton, Craig Newmark Organizations: Bloomberg News, Financial Times, Craig Newmark Graduate School of Journalism, City University of New, McGill University Locations: New York City, Detroit, multibillion, Carvana, City University of New York

☆ Disgraced Nikola founder's argument for why he should avoid jail: He's no Elizabeth Holmes
▼ + stars: | 2023-11-17 | by ( Associated Press | ) www.businessinsider.com time to read: +4 min

Trevor Milton's lawyers say he should avoid prison because his fraud conviction is not like that of Elizabeth Holmes. Holmes was convicted on charges that she defrauded investors in blood-testing company Theranos. Milton was convicted on charges that he duped investors with exaggerated claims about zero-emission Nikola trucks. Court officials have calculated federal sentencing guidelines to recommend between 17 1/2 years and 22 years in prison, although Milton's lawyers object to the calculations, saying they substantially overstate the seriousness of the crimes. "Unlike Holmes, Trevor never put Nikola's customers at risk, whereas Holmes touted and used blood-testing technology that she knew to be unreliable, thus putting human beings at medical risk," the lawyers said.

Persons: Trevor, Elizabeth Holmes, Holmes, Milton, —, truckmaker Nikola, Trevor Milton, nastiness, Nikola, Milton's, Nikola — Organizations: Service, truckmaker, truckmaker Nikola Corp, Wall, The Associated Press, General Motors Corp, Securities and Exchange Commission, Nikola Locations: Manhattan, tatters, Utah, Arizona

NEW YORK (AP) — Lawyers for the founder of truckmaker Nikola Corp. say he should not face incarceration because his fraud conviction is nothing like the fraud that landed Theranos founder Elizabeth Holmes in prison. Milton, 41, was convicted last year of fraud for duping investors with exaggerated claims about his company’s production of zero-emission trucks. Holmes, 39, is serving an 11-year sentence for defrauding investors in the blood-testing company Theranos. “Unlike Holmes, Trevor never put Nikola's customers at risk, whereas Holmes touted and used blood-testing technology that she knew to be unreliable, thus putting human beings at medical risk,” the lawyers said. Lawyers for Holmes did not immediately comment.

Persons: truckmaker Nikola, Elizabeth Holmes, Trevor Milton, nastiness, ”, Milton, Holmes, Trevor, CNBC’s, Nikola, “ Trevor, Milton’s, Nikola —, — Organizations: —, truckmaker, truckmaker Nikola Corp, Wall, The Associated Press, General Motors Corp, Securities and Exchange Commission, Nikola Locations: Manhattan, ”, tatters, Utah, Arizona

☆ Nikola stock surges 9% after disgraced founder Trevor Milton ordered to repay $165 million
▼ + stars: | 2023-10-24 | by ( John Rosevear | In Jrosevear | ) www.cnbc.com time to read: +1 min

Nikola's founder and former CEO, Trevor Milton, was found guilty on three counts of fraud in October of 2022. Shares of electric truck maker Nikola traded higher Tuesday after the company said in a regulatory filing that its disgraced founder, Trevor Milton, has been ordered to pay the company about $165 million in damages. Nikola said in a statement that it intends to seek reimbursement for its attorneys' fees as well. Milton was found guilty in federal court last year on three counts of fraud related to statements he made while leading the company. Nikola will report its third-quarter results before the U.S. markets open on Nov. 2.

Persons: Trevor Milton, Nikola, Milton Organizations: Securities, Exchange Commission, SEC, Hindenburg Locations: New York, Milton, U.S

[1/2] Trevor Milton, (C) founder and former-CEO of Nikola Corp., exits the Manhattan Federal Courthouse following an appearance in New York City, U.S., July 29, 2021. U.S. District Judge Edgardo Ramos said the juror's online posts did not show she lied about her views during jury selection. Prosecutors accused Milton of using social media and news-media interviews to make false and misleading claims, including that Nikola built an electric- and hydrogen-powered "Badger" pickup from the "ground up." They said the juror had lied when she answered "no" when asked if she used social media. Ramos said it appeared the juror had not intentionally concealed her social media use because she had disclosed using YouTube.

Persons: Trevor Milton, Eduardo Munoz, Nikola, Edgardo Ramos, Milton, Jeff Bezos, Mark Zuckerberg's, Ramos, Jody Godoy, Andy Sullivan Organizations: Nikola Corp, REUTERS, Nikola, District, Prosecutors, YouTube, Court, Southern District of, Thomson Locations: Manhattan, New York City, U.S, United States, Milton, Southern District, Southern District of New York, New York

The maker of Tre model electric trucks has decided to make battery electric trucks only to order and focus on hydrogen fuel cell trucks. The company laid off 270 employees in June and liquidated assets of a recently acquired battery maker last month. Nikola forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. Other electric vehicle (EV) startups also have toiled to ramp up production, meet delivery targets and raise funds as cash reserves dwindled. Separately, Nikola reported a narrower second-quarter loss as lower production of its Tre battery-electric trucks in the April-June period helped keep costs in check.

Persons: Stephen Girsky, Brendan McDermid, Nikola, NKLA.O, Michael Lohscheller, Girsky, Tre, Trevor Milton, Akash Sriram, Abhirup Roy, Will Dunham, Anil D'Silva, Sriraj Kalluvila, David Gregorio Our Organizations: VectolQ, Reuters, of Autonomous Vehicles, REUTERS, U.S, General Motors, Friday's, Nikola, Fisker, Thomson Locations: New York City, U.S, Phoenix, Bengaluru, San Francisco

Nikola's investors on Thursday approved a proposal that will allow the company to issue more shares. The maker of Tre model electric trucks has been trying to pivot to hydrogen fuel cell technology. Nikola forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. It had cash and cash equivalents of $226.7 million at the end of the second quarter, compared with $441.8 million, a year earlier. The company laid off 270 employees in June and liquidated assets of a recently acquired battery maker last month.

Persons: Stephen Girsky, Brendan McDermid, Nikola, okayed, Michael Lohscheller, Girsky, Tre, Trevor Milton, Akash Sriram, Abhirup Roy, Anil D'Silva, Sriraj Kalluvila, David Gregorio Our Organizations: VectolQ, Reuters, of Autonomous Vehicles, REUTERS, General Motors, Thomson Locations: New York City, U.S, Bengaluru, San Francisco

REUTERS/Brendan McDermid/File photoAug 4 (Reuters) - Nikola (NKLA.O) on Friday named its fourth CEO in as many years as the electric truck maker navigates a host of challenges including dwindling cash reserves, lingering supply chain snags and a pivot to hydrogen fuel cell technology. The Tre battery-electric trucks maker forecast third-quarter revenue of $18 million to $28 million, compared with estimates of $34.5 million, according to Visible Alpha. Nikola's investors approved a proposal that will allow the truck maker to issue more shares to raise funds. Milton stepped down as CEO in 2020 after short-seller Hindenburg issued a scathing report that labeled Nikola a "fraud." Separately, Nikola reported a narrower second-quarter loss as lower production of its Tre battery-electric trucks in the April-June period helped keep costs in check.

Persons: Stephen Girsky, Brendan McDermid, Nikola, Michael Lohscheller, Trevor Milton, Milton, Hindenburg, Romeo Power, Akash Sriram, Anil D'Silva Organizations: VectolQ, Reuters, of Autonomous Vehicles, REUTERS, General Motors, EV, Lordstown Motors, Thomson Locations: New York City, U.S, Phoenix , Arizona, Bengaluru

☆ Nikola CEO is leaving the company after just 18 months
▼ + stars: | 2023-08-04 | by ( Peter Valdes-Dapena | ) edition.cnn.com time to read: +2 min

New York CNN —The president and chief executive of Nikola, the Arizona-based electric and hydrogen semi truck manufacturer, is leaving the company effective immediately, the company announced Friday. Michael Lohscheller is leaving the company so that he can return to Europe to focus on a family health emergency, the company said. Lohscheller’s predecessor, Mark Russell, also stayed in the CEO role for less than 18 months, meaning Girsky is the company’s fourth CEO in as many years. He became president of Nikola in March 2022, and took over the CEO role in November of last year. During his time as president and CEO, Nikola focused its business more tightly on the US market.

Persons: Nikola, Michael Lohscheller, Stephen Girsky, Mark Russell, Trevor Milton, Milton, Nikola’s, Lohscheller hadn’t, Lohscheller, Loscheller, ” Organizations: New, New York CNN, General Motors, Prosecutors, Volkswagen Group, Volkswagen USA, Nikola, VinFast Locations: New York, Arizona, Europe, Nikola, United States

☆ Nikola wins shareholder approval to issue new stock, paving the way for significant fundraise
▼ + stars: | 2023-08-03 | by ( John Rosevear | In Jrosevear | ) www.cnbc.com time to read: +2 min

Electric truck maker Nikola won shareholder approval to issue new stock, the company said late on Thursday. Nikola was forced to adjourn its annual meeting in June, and again in July, after the total votes fell short of the number required to pass the proposal. That proposal also passed, but not until after Nikola adjourned last year's annual meeting three times to drum up more votes. However, that law changed on Aug. 1, and now only a simple majority of shares voted is required to approve an increase in authorized shares. Nikola had originally asked shareholders to approve the proposal ahead of its June 6 annual meeting.

Persons: Nikola, Trevor Milton, Milton Locations: U.S, Canada, Delaware

☆ Nikola gets required shareholder votes for share increase proposal
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Fabian BimmerAug 3 (Reuters) - Electric truck maker Nikola Corp (NKLA.O) said on Thursday it had garnered enough support for a proposal to increase the number of shares it can issue, opening the doors to much-needed capital. To reduce cash burn, Nikola announced layoffs in June and liquidated assets of a recently acquired EV battery maker. But investors have been closely scrutinizing cash reserves at Nikola and other electric-vehicle makers worried about more share disposals to raise funds diluting their stakes. Opposing the vote vocally was Nikola's founder and top shareholder Trevor Milton, who has also called for a change in leadership. Shares of Nikola, which have soared nearly 60% this year to Thursday's close, fell 3.7% in after-hours trading.

Persons: Nikola, Fabian Bimmer, Nikola Corp, Michael Lohscheller, Trevor Milton, Milton, Thursday's, Abhirup Roy, Gerry Doyle, Lisa Shumaker Organizations: IAA Transportation, REUTERS, Nikola, EV, Thomson Locations: Hanover, Germany, San Francisco

☆ EV startup Nikola reports jump in second-quarter deliveries, shares rise
▼ + stars: | 2023-07-05 | by ( ) www.reuters.com time to read: +1 min

The company said retail sales of its trucks doubled to 66 in the quarter, while wholesale figure rose to 45 from 31. They fell before the bell after the company announced on Monday it would start liquidating assets of Romeo Power less than a year after buying the battery maker. Nikola agreed to buy Romeo Power in August for about $144 million, as it looked to jump-start efforts to make battery packs. EV makers Tesla (TSLA.O) and Rivian (RIVN.O) also beat market estimates for second-quarter deliveries. Nikola, which went public in 2020, produced 33 trucks during the second quarter, compared with 63 trucks in the preceding quarter.

Persons: Nikola, NKLA.O, Romeo, Trevor Milton, Tiyashi Datta, Maju Samuel Organizations: Romeo, Tesla, Thomson Locations: Coolidge , Arizona, North America, Bengaluru

☆ Nikola founder urges vote against critical share proposal
▼ + stars: | 2023-06-16 | by ( Abhirup Roy | ) www.reuters.com time to read: +2 min

Nikola said Milton's social media post "misstates the facts," adding in a statement to Reuters that the proposal to increase its share base could pass without his support. Nikola postponed a vote on the plan to July 6, after failing to secure enough support at a shareholder meeting last week. The share issue is critical for the company which, like other electric vehicle makers, is facing a cash crunch and weak demand. "The company does not need new shares, they need new leadership," he said. Nikola has been urging shareholders for weeks to vote in favor of its Proposal 2, saying "without these additional shares, Nikola's ability to continue its ongoing operations and objectives, including Nikola's need for capital, will be out of reach."

Persons: Trevor Milton, Nikola, Milton, Abhirup Roy, Sonali Paul Organizations: Nikola, FRANCISCO, Reuters, LinkedIn, bourse, Thomson Locations: San Francisco

☆ Electric-truck maker Nikola laying off 270 employees
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +1 min

Companies Nikola Corp FollowJune 16 (Reuters) - Nikola (NKLA.O) said on Friday it would lay off a total of 270 employees, as the electric-truck maker looks to cut costs and sharpen its focus on the North American marketplace. Of the 270 employees impacted, 150 were supporting Nikola's European operations and 120 were based at its sites in Phoenix and Coolidge. The decision would help Nikola reduce personnel-related cash spend by $50 million annually, the company said. Annual cash usage for the company was expected to decrease to under $400 million by 2024, Nikola added. Investors have been closely scrutinizing cash reserves at Nikola and other electric-vehicle makers amid fears slowing sales could push the companies to pursue more share disposals to raise funds.

Persons: Nikola, NKLA.O, Trevor Milton, Niket, Krishna Chandra Organizations: Nikola Corp, U.S, U.S . Federal, Thomson Locations: American, U.S ., Phoenix, Coolidge, Bengaluru

☆ EV startups conserve cash as make-or-break moment approaches. Here's where everyone stands
▼ + stars: | 2023-05-24 | by ( John Rosevear | In Jrosevear | ) www.cnbc.com time to read: +14 min

As legacy automakers increasingly ramp production of all-electric vehicles, cushioned by the profits of gas-powered models, a handful of EV startups are scrambling to conserve cash and stay in the mix. It also means the amount of cash Fisker had left as of the end of March, $652.5 million, isn't yet cause for alarm. Still, Fisker cut its production guidance for 2023 to between 32,000 vehicles and 36,000 vehicles, from 42,400 in its original plan. Or as Evercore ISI analyst Doug Dutton wrote before Fisker's earnings report, "Fisker is beginning to turn into a story of binary and 'show me' outcomes." It had $108.1 million remaining as of the end of March, but it lost $171.1 million in the first quarter .

Persons: Tesla, Rivian, Claire McDonough, Rivian's, It's, McDonough, Deutsche Bank's Emmanuel Rosner, Rosner, Sherry House, Peter Rawlinson, Bank of America's John Murphy, Murphy, Aston Martin, Henrik Fisker, Fisker, Doug Dutton, Dutton, Nikola Nikola, Trevor Milton, Nikola, Voltera, TD Cowen, Jeffrey Osborne, Osborne, Polestar Polestar, it's, Johan Malmqvist isn't, aren't, Deutsche Bank's Rosner, Lordstown, Foxconn, Foxconn doesn't Organizations: EV, Amazon, Deutsche, Lucid's, Bank of America's, BMW, Global, Magna International, Nikola, Iveco, Volvo Cars, Geely, Lordstown, Nasdaq, General Motors Locations: Georgia, Magna, Austria, U.S, Europe, North America, Nikola's, Swedish, China, Ohio, Lordstown

☆ Manhattan federal prosecutor joins Kramer Levin law firm
▼ + stars: | 2023-05-02 | by ( Chinekwu Osakwe | Thomson Reuters | Chinekwu Osakwe Covers Legal Industry News With A Focus On Midsize Law Firms. Reach Her At Chinekwu.Osakwe Thomsonreuters.Com. | ) www.reuters.com time to read: +1 min

Law Firms Kramer Levin Naftalis & Frankel LLP Follow(Reuters) - New York-founded law firm Kramer Levin Naftalis & Frankel said Tuesday that it has hired former Assistant U.S. Attorney Jordan Estes, who co-led the general crimes unit in the Southern District of New York, for its white-collar and government investigations practice. Estes was the lead or co-lead prosecutor on 13 criminal trials ranging from securities fraud matters, insider trading, bank fraud, health care fraud and racketeering, Kramer Levin said. Estes helped secure last year's conviction of Trevor Milton, the founder of electric vehicle company Nikola Corp, on charges that he defrauded investors. In February, prominent Kramer Levin white-collar partner Barry Pollack left the firm to join New York midsize law firm Harris St. Laurent & Wechsler's new Washington, D.C. office. Read More:N.Y. law firm launches in D.C. with white-collar duoOur Standards: The Thomson Reuters Trust Principles.

☆ Electric truck maker Nikola is planning to sell its own shares at a 20% discount to their lowest ever price
▼ + stars: | 2023-03-31 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

Nikola is planning to raise $100 million by selling its stock at a huge discount. The electric truck manufacturer said Thursday that it would sell shares at $1.12, or 20% below their lowest ever price. The electric truck manufacturer said in a statement Thursday that it planned to raise the $100 million by selling 29.9 million shares to the public and another 59.4 million shares to an unnamed investor. It's pricing the shares at just $1.12 as part of the stock offering, a 20% discount to the all-time low of $1.40 they had fallen to by Thursday's closing bell. Nikola shares have cratered around 95% since Hindenburg released its first report into the company on September 10.

☆ Short-seller Hindenburg targets Jack Dorsey’s Block
▼ + stars: | 2023-03-23 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +2 min

New York CNN —Shares of Block, the company behind Cash App, plunged by 20% Thursday morning after the release of a searing report from short-seller Hindenburg Research that accused Jack Dorsey’s company of allowing fraudulent accounts that obscure criminals involved in illegal or illicit activities, including the sex trafficking of minors. Hindenburg’s attack on Block comes two months after the short seller’s allegations against Adani Group erased billions of dollars from the Indian conglomerate’s balance sheets. In 2021, members of the “Cash App” gang were charged with distributing fentanyl, the report said. Hindenburg, meanwhile, has made a name for itself by publishing explosive reports about businesses and short-selling the stocks of the companies associated with them. Hindenburg has targeted nearly 30 companies since 2020, and on average their targets lost about 15% on the day the reports were released, according to Bloomberg calculations.

☆ Explainer: Who is behind Hindenburg, the company that is shorting Adani?
▼ + stars: | 2023-01-25 | by ( Carolina Mandl | ) www.reuters.com time to read: +3 min

NEW YORK, Jan 25 (Reuters) - Short-seller Hindenburg Research disclosed on Wednesday short positions in India's Adani Group, citing potential stock manipulation and accounting fraud in a report. WHAT IS HINDENBURG RESEARCHFounded in 2017 by Nathan Anderson, Hindenburg Research is a forensic financial research firm which analyses equity, credit and derivatives. On its website, Hindenburg says it looks for "man-made disasters," such as accounting irregularities, mismanagement and undisclosed related-party transactions. After finding potential wrongdoings, Hindenburg usually publishes a report explaining the case and bets against the target company, hoping to make a profit. HOW MANY COMPANIES HAS HINDENBURG TARGETEDHindenburg has flagged potential wrongdoing in at least 16 companies since 2017, according to its website.

At trial, Milton was convicted on one count of securities fraud and two counts of wire fraud. In court papers on Thursday, Milton said that one juror had said during jury selection that she did not use social media and got her news via YouTube. But a review of what Milton said were her social media accounts implied that she read many news sources and showed that she had posted about income inequality, Milton said. If the judge does not grant a new trial, he should hold a hearing to question the juror about whether she lied in court, Milton wrote. Reporting by Jody Godoy in New York; Editing by Noeleen Walder and Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.

☆ Justice Department Prosecutors Swamped With Data as Cases Leave Long Digital Trails
▼ + stars: | 2022-11-28 | by ( James Fanelli | Corinne Ramey | ) www.wsj.com time to read: 1 min

U.S. Attorney for the Southern District of New York Damian Williams views the data issue as a crisis. When the U.S. attorney’s office in Manhattan brought securities-fraud charges against executives of cable operator Adelphia Communications Corp. in 2002, its case involved one million pages of evidence. In the office’s recent case against Trevor Milton , the former electric-truck executive who was convicted of fraud charges, prosecutors handed over four times that number to the defense. The numbers are even higher in a pending securities-fraud case stemming from the collapse of Archegos Capital Management LP, where prosecutors already have provided more than seven million pages of evidence to defense attorneys—after asking a court for a six-to-eight week window to produce the material.

☆ Bad Bets Season 2: The Unraveling of Trevor Milton
▼ + stars: | 2022-10-28 | by ( ) www.wsj.com time to read: 1 min

Bad Bets is a podcast series that unravels big-business dramas that have had a big impact on our world. In season two, we delve into the story of Nikola Corp. founder Trevor Milton , who promised a future of zero-emission trucks that could revolutionize the industry. Ben Foldy is the host of this season of Bad Bets. Bad Bets is a production of The Wall Street Journal. This season is produced with Jigsaw Productions, in collaboration with Story Force Entertainment.

☆ Inside a Jury’s Five-Hour Journey to Convict Nikola’s Trevor Milton
▼ + stars: | 2022-10-27 | by ( Corinne Ramey | ) www.wsj.com time to read: +1 min

Nikola founder Trevor Milton, shown at a New York courthouse last month, was convicted of securities fraud for what prosecutors said were his lies about the company’s technology. A jury’s journey to convictNikola Corp. founder Trevor Milton of defrauding investors involved negotiations with initial holdout jurors and tense debates about whether the former electric-truck executive acted with criminal intent, producing an unusual mixed verdict. Three women, known during the trial as Jurors 1, 5 and 6, described to The Wall Street Journal how a federal jury in New York over five hours came to find Mr. Milton guilty of two wire-fraud charges and one count of securities fraud—but not guilty of another securities-fraud charge that carried the stiffest maximum sentence. The verdict, delivered Oct. 14, puzzled some court watchers because the two securities-fraud charges involved the same alleged conduct by Mr. Milton and required jurors to make nearly identical findings to convict.

☆ Electric-truck maker Nikola lays off 15% of Romeo Power's workforce in post-$144 million acquisition restructuring
▼ + stars: | 2022-10-27 | by ( Alexa St. John | ) www.businessinsider.com time to read: +3 min

Electric truck startup Nikola just bought battery firm Romeo Power for $144 million. Just weeks after completing its $144 million acquisition of Romeo Power, Nikola Motors laid off 45 employees of the young battery firm, the company confirmed to Insider. Cypress, California-based Romeo Power is a fledgling battery pack maker that went public via SPAC in December 2020. The Romeo employees whom Nikola later let go included nine corporate executives serving in what Brady called "duplicative roles." Are you a current or former Nikola or Romeo Power employee?

Companies Nikola Corp FollowNEW YORK, Oct 14 (Reuters) - Nikola Corp (NKLA.O) founder Trevor Milton on Friday was convicted by a U.S. jury of fraud over allegations he lied to investors about the electric vehicle company's technology. The jury found Milton guilty on one count of securities fraud and two counts of wire fraud after deliberating for around five hours. Milton was acquitted on an additional count of securities fraud. He left Nikola in September 2020 after a report by short seller Hindenburg Research called the company a "fraud." The defense said prosecutors had distorted Milton's statements about Nikola's plans to shake up the automotive industry.

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