Nikola receives $2M government grant weeks after founder criminally charged
Nikola founder Trevor Milton stepped back from the company after a report accused him of deceiving investors
It was the best of times, it was the worst of times for zero-emission truck maker Nikola.
The company on Thursday said it has been awarded a $2 million grant by the Department of Energy — just weeks after Nikola founder Trevor Milton was criminally charged for lying to investors about "nearly all aspects of the business."
Milton stepped back from the company in September after a damning report from short-selling activist firm Hindenburg Research accusing Milton of deceiving investors with a video that made it look like one of Nikola’s trucks was driving when in fact the vehicle was simply rolling down a hill.
CEO and founder of U.S. Nikola, Trevor Milton speaks during presentation of its new full-electric and hydrogen fuel-cell battery trucks in partnership with CNH Industrial, at an event in Turin, Italy December 2, 2019. REUTERS/Massimo Pinca - RC2AND97
NIKOLA FOUNDER TREVOR MILTON INDICTED ON 3 FRAUD CHARGES
Nikola says Milton, who was criminally charged by Manhattan federal prosecutors on July 29. is no longer involved with the company. He still holds roughly 16 percent of the shares outstanding, however.
Nikola has not been charged, but has been subpoenaed by the SEC and the Department of Justice. It is also dealing with multiple shareholder lawsuits.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NKLA | NIKOLA CORP. | 1.84 | -0.17 | -8.46% |
The grant comes as the Biden Administration looks to ramp up investment in clean energy. And Nikola — while it has yet to actually create any trucks since its founding in 2014 — has said it aims to manufacture up to 50 electric trucks by the end of the year.
Initially the company predicted it would create up to 100 trucks, but back-pedaled earlier this month, saying it does not have the necessary parts to create that many trucks.
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The company has previously received a $1.7 million grant from the Energy Department. The most recent funding will be used for "research into autonomous refueling technologies for future hydrogen fueling station," the company said.
"This funding is essential to advance key hydrogen fueling technologies that can improve the overall efficiency of fuel-cell commercial vehicles, while maintaining the safety and reliability standards required," Nikola President Pablo Koziner said in a statement.
Nikola was awarded the grant on July 7th but waited to announce the news until Friday.