The Founder of Nikola, Trevor Milton, has resigned from his post as executive chairman after a short seller denounced the hydrogen and electric truck startup of deceiving speculators and exaggerating the estimation of a business contract. Milton has likewise left the organization’s board. The organization has recently denied the charges and began legitimate activity against the research organization that made them. Stephen Girsky, a former vice chairman of General Motors and current board member at Nikola, will take over as chairman.
Hindenburg Research, which brings in cash by wagering against organizations, distributed a report recently asserting a scope of wrongdoings at Nikola, including that Milton introduced a model truck as being nearer to advertise than it might have been. The report likewise said that Nikola misrepresented a business contract as being worth more than it seemed to be. Shares in the organization have dropped by over 19% since the report was distributed by Hindenburg. They fell more about 20% in trading soon after at the open on Monday.